Tuesday, November 2, 2010

News Flash!

Rand Paul promises to carry the message to Washington that Kentucky is not happy that big government turned an incipient depression into a recession; they want a full fledged great depression along with reduced military spending, cuts to Medicare, and tax cuts for New York billionaires.

OK, those aren't his exact words, but it is what his words meant. He never would have gotten elected if he had said what would result from cutting government in the middle of a depression.

Earlier today, Rick Santelli (a former hedge fund manager now reporting for CNBC, who practically created the Tea Party with a live rant from the floor of the Chicago Board of Trade) argued that the Fed action in September 2008 along with Bush's TARP bailout of major banks (October 2008) and Obama's stimulus plan (February 2009) is responsible for the depression that started in the summer of 2008 ... and then moments later hoped that the Fed would ignore his economic ideas and come through with more quantitative easing, arguing that the markets he follows would collapse if we don't get more stimulus because the Republicans in Congress sure won't provide it!

I can see why he got out business and became a reporter.

I have to wonder what Santelli would say on Wednesday if the Fed were to announce that there won't be a second phase of quantitative easing (QE2 in current parlance) in response to public demand for less government intrusion in the markets. I'll bet he would panic as the bond market collapsed.

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