Make no mistake, today’s stock market plunge was as much the result of the bailouts of Bear Stearns, Fannie Mae and Freddie Mac as the absence of a bailout for Lehman Brothers and now for AIG.Further, just as Bernanke-Paulson grossly underestimated the severity of the housing decline, their immediate socialization of the initial losses should unequivocally confirm their total lack of understanding of the depth and breadth of this crisis with behemoth disasters continuing to fall like dominos.
The bailouts that were nearly immediately doomed to irrelevance in terms of prevention will now wreak havoc on average Americans for decades to come.
Given our current circumstances, can everyone plainly see the absurdity of bailing out Bear Sterns in order to prevent the dreaded ripple effects?
It should come as no surprise, though I suppose with some irony, that a nearly two decade run of “Easy Al” monetary policy would give way to crisis and to even more irresponsible and unethical Federal Reserve mismanagement of our economic system.
It should be perfectly obvious to all that both Bernanke and Paulson need to resign immediately in order provide even the slimmest possibility for their replacements to implement measured, effective and fair policy.
