NY Times Editorial:
Who Will Come to the Rescue? “It’s clear that the Bush administration and Mr. Bernanke would welcome greater ownership of the nation’s financial institutions by foreign governments. That’s an effective short-term fix, and could conveniently avert a financial meltdown on their watch. But it also means a long-term transfer of a chunk of the future revenues of the American financial system to foreign governments.” Dear old Ronnie started this in the ‘80’s, financing his deficit through the Japanese. Problem is, the lower the Fed drops the interest rate, the less the dollar is worth, the harder it is to finance our burgeoning deficit. Which will the Administration choose? To bailout our financial systems and homeowners, or protect the deficit? There are no ‘good’ answers left. My question is ... who’ll bail out the Fed when this all goes awry?
Later: Washington Post, “Never do I want to hear again from my conservative friends about how brilliant capitalists are, how much they deserve their seven-figure salaries and how government should keep its hands off the private economy.”
