Few Thoughts

1.) Quantitative easing scares me to death. The Fed is playing with fire and hoping to not get burned. Whether you agree with the Feds recent decision making or not, you better hope it works. QE2 is in the works and its window of success is small, to much and watch out for inflation. But what happens with inflation, the Fed is forced to raise rates and you can pretty much expect the economy to completely shut down. The Fed has lowered rates to so close to zero that it is having to be creative to continue any kind of monetary easing. Ill be honest, the economy is no where close to full recovery. By the way, for those not familiar with quantitative easing, it is when the Fed creates money out of nowhere to buy financial assets. Much like printing money but instead they just key in few numbers to computerized accounts. I wish I could do that.

2.) Foreclosure Moratorium. This would only postpone the pain of foreclosure to the economy. Foreclosure is a tough situation and the only possible winner is the end buyer who may get a good deal on a piece of property. Trust me, everyone else loses big in foreclosure. From the banks to the home owners. Its best for everyone to stay in their homes, but when the bills aren't being paid, banks cannot simply keep the loans on their books out of charity. Foreclosures have done a lot to depress the housing market but the process has to play out. A moratorium will only delay the inevitable and create a back log of foreclosures that will pile up during a moratorium and then all will hit the market at the same time when a moratorium is lifted, causing a shock to the market that would devastate an already depressed market. Worst case scenario, if a moratorium was instated with political motivations and a short term fix caused long term problems just for a temporary political jump.

3.)Cant remember my third one, it was a good one though.

Friedman Friday (sort of)

Link of the Day

Waivers Granted in Health Care Bill

The framers envisioned a decentralized government where you are governed by rule of law. This is rule by whim of autocracy. Health and Human Services Secretary is mentioned over 2500 times in the bill. It states "the secretary shall" around 700 times. The proper way to address this would be to repeal that portion of the law, but now they have established a precedent to give and take away privileges in the law on a whim. There is no standard but who has the most influence, or has the biggest microphone, or who they like the most. This is what happens when people who have no experience in the industry seek to make the decisions. This bill is a disaster.