08-23-2007, 08:30 AM
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CC Member
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Join Date: Jan 2004
Location: Tropics as often as possible,
FL
Cobra Make, Engine: ERA #2097 -289FIA . 351W. PSE Torq Thrust 17" Ds. All Black.
Posts: 1,190
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Not Ranked
The Fed created the "housing crisis" to begin with...by giving away money almost interest free during the past. I recall a Wall Street Hedge Fund manager being asked if he planned to buy a new Ferrari with part of his $300 million Xmas bonus. No, he said, already have 2.
All that "free" Fed money winds up downstream in those hedge funds whether it starts out in Freddie Mac or Fannie Mae, or goes directly (as it did last week) to big banks. Freddie and Fannie (and big banks) resell the money, they don't save it. And cheap money is much easier to resell.
If the Fed would loan me money at 1% interest, I am sure I could use it to buy some high risk investments, knowing that I can always declare I'm bankrupt later (or have the Fed bail me out) and live a very comfortable life in between.
Last edited by TampaFla; 08-23-2007 at 08:32 AM..
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