Germany's Angela Merkel, speaking in Seoul, where she is attending the G20 summit, Dr Merkel acknowledged her demands have upset the markets but insisted it was unfair for taxpayers to be saddled alone with the cost of sovereign rescues. “Let me put it simply: in this regard there may be a contradiction between the interests of the financial world and the interests of the political world,” Dr Merkel said.
“We cannot keep constantly explaining to our voters and our citizens why the taxpayer should bear the cost of certain risks and not those people who have earned a lot of money from taking those risks.”
Thursday, November 11, 2010
Courtesy of Mr Bernanke the return of slavery...
Generations will look back and wonder - what was Mr Bernanke allowed to do.
How did QE2 become both LAW and JUDGMENT? Yes, in the full light of day, QE1 and now QE2 shackle taxpayers and pensioners as financial prisoners - beholden to creditors of the US Treasury including foreign patrons - ALL to continue the bailout of the system or so we've been told.
In two fell swoops QE1 and QE2 both unilateral programs from the FED, make that a beholden- to-the-financial-system" professorial, indeed likable but inept Fed Chairman. And a monetary judgment, a veritable tax upon us all without even a jury.
The only system that seems being fixed (at least for the 5th time) are the bond traders, the NY Fed and the Federal Reserve itself. Capitalism has been thrown under the proverbial bus (at least for the 5th time) RIGHT IN FRONT OF OUR EYES AND WE PAY FOR THIS?
FDIC's Bair recently stated the obvious "markets need to clear".
BOND holders' culture of entitlement may as it should be coming to an end - the end of the notion that return of principal were a God - given right. That due diligence must be performed for a reason.
The title of this post should include "& future generations of taxpayers", alas.