The Socalist Extravaganza Continues: Treasury Pledges to Save Dying Muni Market
Pic credit: This Modern World
No, not like San Francisco Muni (yay, fun times on public transportation!), as in municipal bonds. And boy are they a mess.
The US Treasury would provide a backstop to stricken states like California, which are struggling to raise debt, under legislation due to be introduced to Congress.
Proposals published on Thursday would see the Treasury acting as a reinsurer in the market and the Federal Reserve setting up bond purchase agreements, which were commonly provided by banks until the credit crisis.
The changes present an even greater use of federal money and oversight into new areas of the market, with billions of dollars from the $700bn troubled assets relief programme – which has been used to buy stakes in banks and car companies.
What in the fuck is this bullshit? Seriously? I would love to say something enlightened and critical here about this but all I am left with is absolute disgust at what our country has devolved into. No one to buy our T-bills? So what, have the Fed do it. No one to buy Detroit's shitty cars? So what, have the Fed do it. No one to unload toxic assets on? The Fed will be happy to help.
We have established that TARP is down to pennies and China is balking at loading up on more American debt. So where exactly are we supposed to get the money to fund this particular stunt?
Get to da choppa, Bernanke, we gots some printing to do...
It is the only possible way this can be accomplished. Are we ready for a completely debased US dollar yet? Or at a minimum, are we ready to at least admit that this is the direction we are headed?
R.I.P. worthless US Dollar, nice knowing you.