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They are essentially creating a $300-billion bank out of nothing.
~~ Lou Crandall ~~

Lou Crandall, an economist at a financial research firm, was reacting on the U.S. Federal Reserve’s efforts to expand credit to ease the credit crisis; a crisis caused mainly by the sub-prime mortgage lending.

I think Mr. Crandall is quite mistaken. They are not creating a $300-billion bank out of nothing; they are creating it out of the tax payers money!

Now is the moment when the reality has hit home. And the reality is trashing all the follies, such as the sub-prime mortgages, committed by the so called ‘whiz kids’ with their ‘creative ideas’. Where are these whiz kids now? Why don’t they step up to the plate with their creative ideas to stop the bleeding? Looks like they have run out of their creative ideas. LOL. That’s what happens when reality meets fantasy. Many so called big financial players will hit the dust; just like Beer Sterns did.

This $300-billion of tax payers money being thrown in by Federal Reserve may postpone the reality for a little while but ultimately the reality will prevail. And that means more financial upheavals until the fantasy world of lousy financing is crushed down to reality. Unfortunately, a lot of ordinary folks are going to be left holding the bag.