Tuesday, November 25, 2008

What the Feds won't tell you...

The not-so OK corral
You know the scene- or maybe not... Nell is tied to the railroad tracks. Cut to the picture of the train. It's coming with a full head of steam. The cowboy is riding hard, whipping his noble white (of course!) stallion across its flanks urging it on. Clouds of dust are churned by the cowboy and his noble steed. You see the train, smoke belching from its smoke stack, on the horizon. The cowboy urges his gallant thoroughbred to gallop faster. The train pounds on at a gathering pace. Nell is frightened, crying, struggling against her bindings. She is still tied tight, draped across the railroad tracks like a lovely limp lump of pristine white spaghetti (it's a spaghetti western, of course). The cowboy finally gets to Nell. He jumps off his horse his white hat flying off his head exposing golden locks of hair swept with wind whisking off the lone prairie. The camera catches him for one brief moment in profile as he moves quickly to grab Nell off the tracks. The train pounds down on his effort...and -

Dang!

Reality bites...
The train runs over Nell cutting her in half spraying blood all over the cowboy and his white hat as it lays on the ground (camera close up on bloody hat). The cowboy's horse spooks at the spattering worthy of an R-rated Halloween slasher movie and it runs into the train; it too is ground under the wheel of that big steel beast, crushed against the silver rail that slickens with red fluid that shoots out from under the train as that steel sliver of rail stretches into the distance, straight and true.

Cowboy hell
The cowboys sits there drenched it the fair maiden's blood. And he wonders about how it might have been as blood drips off his forehead and cheek and it trickles into his mouth...
He wonders: did she have aids?

Yes this is the analogy of the the financial story told in terms of the cowboy and Nell. It is not the one you remember from your youth.

But it's where we are today in the financial markets. Nothing comes 'just in' time and those we once depended on fail us.

YES
THERE WILL BE BLOOD and might well be YOURS!


The way we were...
In those days wearing the white hat was enough to know your horse would be fast enough, you would be clever enough, and strong enough, and tough enough, and that you would prevail.

The real world
But theses days things are different. Help does not come in time. It may not come for you at all. In a more accurate modern day portrayal the cowboy would ride to a BANK and try to pay ransom to get a banker to ride out to save you from under the wheels of the train. But the banker would be crippled or otherwise bust or short staffed or wary that the cowboy's check just might not clear. ...ohh sorry about that too late again..next?

The newest reality 'show'
The Fed is never going to ride to YOUR rescue. Neither will treasury. They have no plans to do things to directly impact new mortgages. There are some work out proposals to help 'troubled lenders' and borrowers. But the main thrust is to help you by helping banks its called trickle down and what is tricking down to you is your money, money spent by the Fed and Treasury on banks. If you are lucky there may be a a few crumbs to drift down to your level or a few drops to trickle if you prefer the liquidity analogy.

SOS SOS SOS SOS (same old stuff)
The plan remains to HELP BANKS> inject them with capital> Buy their bad assets>> then hope that they lend to to he public (i.e. YOU).

DO NOT
DO NOT
do not do anything to help the public directly.

DO NOT

This is something that they will never tell you.

1 comment:

QUALITY STOCKS UNDER 5 DOLLARS said...

The only thing that the fed is good at is unsound money.