Bernanke Needs To Show Leadership

This situation is Enron on steroids.

Actually go back to the S&L crisis, then Enron, then dot com crisis. stock market crash. All of these occurred because of cheap money as well as Corporate America's fraud, abuse and enriching themselves. When a CEO sell his stocks ( options) and tell the employees to buy, something is amiss. Corporate America makes these exotic loans, backdating, and other nefarious deeds to gain wealth, but when they go bad they look for the Federal Government to bail them out. Corporate Welfare.

Bernanke needs to hold Fed rates where they are and be his own man. Not a clone of Greenspan who followed the whim of Corporate America. If Bernanke lowers interest rates, what is he saying to those who played by the rules?? This bailout is akin to Amnesty for illegal aliens breaking the law to get in and stay in USA. What is given to those immigrants who did the right thing by waiting in line to be citizens??

The problem is too cheap money for Corporate America to fiddle with as in fraud, abuse, and enriching themselves. Too cheap money and lack of oversight will always result in Enron and S&L crisis. There was fraud from the borrower to the mortgage lender to the ratings firms to accounting firms. What are these CDO's worth? Who knows? Check the balance sheet of these firms. H & R, Countrywide, Bear Stearns, Moody, and many others. They don't know the value of their subprime loans and neither does the investors ( especially the investors). Enough already.

Bernanke knew coming into this job that he will get criticized from all sides. He needs to do the right thing and let the markets work out themselves ( the correction).

Look, even if Bernanke drop the rate .5% or even 1%, it will do no good. As Americans are spent out. They are indebt up to their eyeballs. They have charged out, pulled out equity from their homes, and even spent their savings.
The economy is going to slow no matter what.

Spending is over. Now we must tighten our belts and get our financial house in order.