Reply #49: Aw, come on! One last bubble, pleeze? One for the road?

[donkeyotay]

The post-Volcker Fed has changed all that. Ever since it bailed out Wall Street during the Long-Term Capital Management crisis in 1998, the financial system has become more leveraged and less transparent. In the ensuing 10 years, not only were interest rates not tightened to prevent a recurrence, the rules were loosened as the Glass-Steagall Act, which had regulated banks since 1935, was repealed.

The Alan Greenspan-led Fed fomented a bubble in stocks, then chose to shortcut the aftermath by creating a housing bubble. That has left us far, far worse off today, and I suspect there are no bubbles left with which to temporarily bail us out.

The Fed's encore bubble is to transfer decades with of corruption and fraud off their books onto ours. It'll take care of those pesky social security and medicare obligations, the uppity aspirations of a middle class to have a democracy, and leave us a compliant third-world work force for the new management coming in. Oh my. I don't mean to sound bitter or dwell in the past, but let's face it, they sold us out.