Demoskratos

 

The banks made irresponsible loans and created complex derivatives on top of the mortgage backed securities and if it works, they are heroes and if not, they ask for a government bailout.  Well, it’s not working.

 

So now it’s not working and Moody’s is about to downgrade the ratings on bonds hence causing the cost of insuring these bonds and/or force institutions to hold larger cash reserves.  This will simply put a tighter strangle hold on credit and lending in addition to further loss of confidence, negative GDP reverberations and job losses.

 

Stress test?  Shouldn’t that be a regularly scheduled program of the Federal Reserve?  Geithner and Bernanke, rotting apples from the same sickened tree branch.

 

Mr. Geithner and Mr. Bernanke stop playing with your thumbs, giving useless rhetoric and reports and do something other the same old things and expect a different result.

 

 

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