Our Potemkin Village government warns big banks on risk it is creating

Credit: ConceptArt.org
Credit: ConceptArt.org

Ouch, make it stop. Our government is concerned speculative bubbles it is creating by loaning big banks money at tiny rates could be speculative bubbles.

Fed chair Bernanke says low interest rates could spur hazardous lending and asset bubbles, as he continues shovelling hundreds of billions to those same big banks at minuscule interest rates to encourage such reckless behavior.

Currently, Bernanke’s efforts to help the economy have focused entirely on creating new asset bubbles in student loans, subprime car loans, and the stock market. He is solely focused on helping Wall Street, Main Street can take a hike.

If he want to end the speculation, he’d simply raise interest rates. But not to worry, he’s already being solicitous towards the big banks about the possibility than an interest rate rise would cause their speculative “investments” to tank in value which I suppose that means more bailouts.