Earth to Washington: "We Have a Problem" I read yesterday in a Bloomberg report, the financial institutions could have up to $1 Trillion in write-downs in the near future. Do you realize how much that represents? If you expect the taxpayer to bail these institutions out, how may years will it take and how high will our taxes be to pay for this $1 Trillion bailout? Then I read that our President and Congress intend to give the Federal Reserve more power to control the financial institutions. Question? Just who is the Federal Reserve accountable too? I would bet that most of the readers of this blog cannot answer that question. The answer is NOT the Government (people) of the United States. Some will say; "The President nominates the Chairman of the Federal Reserve as in Ben Bernanke. What that did not say is that the choice of who the President nominates is based on who the Board of Governors choose to send up to the President. In other words, the Federal Reserve chooses it's own Chairman, then the President and Senate approve their nomination. Now on top of the above, I read the new financial system will be based on some Scandinavian or Norwegian program, "Hello"? Are not Norway, Sweden, Finland and Denmark predominantly Socialist? Bet you cannot find that article in the major media this morning! By the way, "Socialism" has not worked in any Nation in the past, so what makes them think Socialism will work in the United State of America? Washington will not deal with the problem but playing the ethanol game has and will continue to drive this Nation into the bottomless pit. Relying on foreign enemies to supply the necessary oil to fill fuel the economy will continue the down fall. What to do? Having spent some years in the securities markets, hard asset markets, financial markets and finally the real estate market, I have concluded the following:
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