Our banana republic Federal Reserve

Dealbreaker on the supposed $15 billion bailout of Fannie and Freddie

It probably goes without saying that you should exercise extreme skepticism about this, especially after Friday’s triple head fake. You remember that, right? First we heard that the government was going to takeover the pair and wipe out shareholders. Then Bernanke was opening the discount window to both. And then he wasn’t. It’s all been very suspicious, very third-world and banana republic, very unfree market. Watching all this is like engaging in Kremlinology.

Then again, never attribute to malice that which can adequately be explained by stupidity. Maybe the Fed has no freaking idea what to do, and no one is in control. Which is probably more unsettling than thinking we are being controlled by devious puppetmasters.