So, the Fed came up with $200 billion over the weekend to keep the markets liquid. Meanwhile, there's a House bill with $10 billion to save people's houses that maybe, some day, might get passed if those we laughingly call our representatives get around to it:
A top House lawmaker will introduce legislation soon to address the jump in foreclosures. Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, said Tuesday his bill would provide $10 billion to state and local governments to buy foreclosed properties to prevent neighborhood blight. The bill would also strongly urge lenders to recognize their losses from sour mortgages and would extend federal refinancing efforts.
Hey, I don't know the answer to the question in the title, because I'm not a financial innovator.
But I do remember reading about brokers jumping out of windows on Wall Street during the crash of 1929.
Shouldn't we be seeing some of that now? Have these people no shame?
Oh, and I was looking for what Barney Frank had to say or was doing on all this, because I'm thinking that trustworthy people are in short supply in our corrupt and depraved political economy, and I trust Barney Frank (within reason). But nothing. Odd. Or not.
UPDATE Via Sideshow, Athenae unleashes an awesome.... Well, I'd call it a rant if it weren't a calm and objective portrayal of our current plight:
Let me ask a couple of questions here.
Does Bear Stearns have a big screen TV?
What about bling? Any bling they could sell?
Couldn't Bear Stearns just get a job, already? I mean, I know of six or seven places that are hiring. I don't know what they pay, but surely it would be enough to keep them in sneakers and Xbox games.
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the difference is....
There is a big difference between the Fed coming up with 200 billion, and Congress spending it.
And the difference is this -- when Congress spends money, its added to the budget, and the national debt.
When the Fed "comes up with" money, it literally creates it out of thin air. LITERALLY. The Fed has not budget for this kind of thing, it doesn't have to be appropriated by Congress, because before the Fed comes up with the money, it does not exist.