Earlier this week, economist and New York Times op-ed contributor Paul Krugman said, “In a worst-case scenario, the Federal Reserve would find itself owning around $200 billion worth of mortgage-backed securities.”
Then, what happens? You guessed it – the Federal Reserve offers up to $200 billion in credit to investment banks to sell off bad debt to – who? – us!! What goes around, comes around, I guess.
$110 a barrel oil (3/14/2008), $4 gas on the way. Oh, and, by the way, that tax rebate you’re going to be getting in the mail? Send it to your state department of transportation. Instead of stimulating the Taiwanese economy by buying a flat-screen TV, how about stimulating our own economy and rebuilding the crumbling bridges and roads we drive on every day?
Yes folks, we are well and truly screwed. Don’t tell me you’re surprised.