[the invisib1e hand]

yes. Bernanke showed tough love, without which he will never have credibility or respect (he being synonymous with the Fed as its Chairman).

Pres Bush proposed the softer side, which as a lame duck was the perfect stroke.

Like it or not, piss and moan as would-be experts always do, this was a brilliant strategy. The best.

[Moonman62]

And this, from Bernanke: "It is not the responsibility of the Federal Reserve — nor would it be appropriate — to protect lenders and investors from the consequences of their financial decisions."

Who suffers the consequences when the Federal Reserve makes bad financial decisions, such as inverting the yield curve, or incorrectly blaming the economy for inflation?

[VxH]

 

Are these actions going to correct the inflated home prices caused by sub-prime lending?  NO.

 

Are these actions going to create a pool of buyers who are able to qualify for financing on the purchase of homes at these inflated prices?  NO.

 

Are these actions going to reverse the decline in both new and existing home sales? NO.

 

What a crock.  The damage has been done.

[snarks_when_bored]

So not only is the American government going to provide health care and living expenses for every current American and every wannabe benefit-scrounger who manages to weasel his way into the country, now it's going to put a floor under world equity markets so that people who make highly leveraged bets on risky investments needn't worry about precipitous market declines wiping them out.

Isn't that special?

[VxH]

I dunno, I'm thinkin' ya might need a few more fingers to fix this problem, GW.

 

[SuziQ]

That's why we were heartened to hear Bush add the following: "The government's got a role to play. But it is limited. A federal bailout of lenders would only encourage a recurrence of the problem."

Good for the President!