Fed was worried about bailout credit consequences

As in worried they might become the next credit casualty. If only the Democrats in Congress would wake up to the bailout and it’s potential consequences. That intervention was highly unusual and very risky yet nobody wants to talk about it. If they had to (and I’m not convinced they had to) go along with it they should have at least made it a painful process and let everyone know how exceptional it was. The lesson learned on Wall Street and by the GOP was that the wealthiest can get away with anything yet everyone else will be held accountable.

The Fed and Bernanke are in full CYA mode this week and letting everyone know how urgent this intervention was to avoid catastrophic failure. Bullshit. If the situation was so urgent, why and how did they let it get that far? How did the checks and balances fail? Anyone who believes for one minute that the risks were not known or that trouble was out there is a liar or an idiot. An overhaul of the regulation system is needed and everyone who was supposed to be providing oversight should be fired immediately and replaced, including Bernanke. Meanwhile, the Democrats failed miserably to tie this fiasco to the GOP who owns this trillion dollar mess. There are only so many lost opportunities that one can stand.

An American in Paris, France. BA in History & Political Science from Ohio State. Provided consulting services to US software startups, launching new business overseas that have both IPO’d and sold to well-known global software companies. Currently launching a new cloud-based startup. Full bio here.

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