Bushonomics: Repeating Economic Past Failures

Fed lays out details for bank loans

Joint Economic Committee Chairman Sen. Charles Schumer, D-N.Y., holds the gavel as he listens to testimony by Federal Reserve Chairman Ben Bernanke on Capitol Hill in Washington, on 24 September 2008. The government's biggest economic bailout since the Great Depression is aimed not at relieving unemployment or reforming questionable business practices, but at resuscitating financial markets.


7 October 2008
By JEANNINE AVERSA

WASHINGTON - The Federal Reserve is providing more details about when it will make billions of dollars in short-term loans available to squeezed banks.

The loans — part of an effort to ease intensifying credit stresses — are made available to banks through auctions. The Fed — in coordination with other countries' central banks engaged in similar efforts — laid out dates that it will conduct the auctions through the rest of this year.

To help ease credit stresses, the Fed announced Monday it will provide as much as $900 billion in cash loans to banks. Most of the loans are for 28-days and 84-days. Some are shorter — 13-day and 17-day loans.

Commentary:

This type of Economic financial shoring-up was carried out prior to the crash of 1929 and was proved to be a failure and as history shows the 1930’s Great Depression occurred after the stock market crash on "Black Tuesday," 1929.

It is a hope, that the same mistakes are not repeated, which will concur the same outcome; for my understanding the economic collapse this time would be far greater then the 1930‘s Great Depression and I for wish this not to happen.

There are some very possible solutions, but apparently the US government has not thought of them yet.

Furthermore, it was brought to my attention recently that US President George W. Bush doesn’t appreciate the fact of my trying to not just help the American people to save them from very possible catastrophic economic collapse, but also the global community on this extreme devastating economic crisis.

Nevertheless, I would be a very poor person to just stand aside and do nothing, while people suffer.