Today, the Federal Reserve announced additional credit facilities to promote small business and consumer loans and pledged an additional $800 Billion to those ends. Is anyone else tired of hearing about new and even more creative ways to pump more credit upon an economy that is already saturated with credit to its very core?
When you shake down these credit facilities, they all have one common denominator – inducing the US economy to go further in debt in order to sustain unsustainable consumption. As the financial crisis mounts, the acronyms get longer and the numbers get larger, but in the end, the song remains the same.
While Mr. Bernanke is best known for his helicopter comments more than a half decade ago, we must give him credit for being consistent. He is doing exactly what he promised.