United Liberty

Fed Chairman Bernanke:

From a technical perspective, the recession is very likely over at this point.

…

it’s still going to feel like a very weak economy for some time, as many people will still find that their job security and their employment status is not what they wish it was.

We are no where near a recovery.  We haven’t even begun to feel the affects of the bailouts yet.  Only $2 Trillion of the possible $23.7 Trillion Dollars from the TARP money has even been spent yet.

Inflation here we come.

Contributor Jason Pye recently reported on the government report emanating from Missouri which labeled supporters of Ron Paul, Chuck Baldwin and Bob Barr as possible domestic terrorist suspects.  Because of the immense public outcry, the report has been rescinded and apologies issued.

From John Tate, Executive Director of the Campaign for Liberty-

Dear Friend of Liberty,

Although it sometimes seems that freedom is shrinking everywhere we turn, the fact is a powerful grassroots stand can still stop Big Government bureaucrats in their tracks.

Yesterday, the details of Geithner’s new plan to address the banks’ toxic assets was released. He also penned an op-ed in the Wall Street Journal and appeared on CNBC (not sure of other media appearances). The U.S. Treasury website has also released a wide array of information regarding the plan - this is a good place to start if you want to read some of it.

An article in the Sunday, March 15 edition of The Birmingham News, entitled “Lots crumble and mud flows”, discusses some of the complications resulting from the plethora of unfinished housing projects that have been put on hold in the current economic crisis. The problems include excessive runoff and mud flows, crumbling roads without a final seal coat, empty houses in various stages of construction, construction debris posing safety hazards, and other various forms of pollution. Curiously, nowhere in the article does its author acknowledge that most of these housing construction projects are the result of a housing bubble.

According to a recent report released by Chicago based research and consulting organization Spectrem Group, examining the effects the recent market downturn has had on America’s affluent, the number of American households with a networth over $1,000,000 has declined dramatically since 2007.

While this statistic is not a direct measure of inequality, this drop in the number of millionaires will inevitably have a significant effect in bringing down total inequality in our economic system.

For most investable assets, the market has been in a 25 year bubble, instigated by the poor monetary, regulatory, and fiscal policies created by our goverment and the institutions (i.e., the Fed) that closely surround it. This bubble artificially created a greater number of affluent than the economy would naturally support, and which could no longer be sustained once the bubble popped.

When I think of the potential for future inflation from the combined current actions of the Treasury and Federal Reserve, I need a little comic relief.

Whom do you trust?

It’s an open question that I’ve been pondering for the past several weeks. The markets have been asking this question, as well — despite billions of additional borrowed money to bail out Citibank and protect AIG’s trading partners, we keep sliding to new lows as debt deflation continues.

Our Treasury Secretary, Turbo Tax Tim Geithner, sat in front of the Ways and Means Committee Tuesday to assure our representatives that his actions, and Obama’s budget proposal, are absolutely necessary to restore our economy. His favorite quote when confronted by pointed questions or painful anecdotes from our current crisis was, “That’s exactly why we need to…” [bail out AIG/increase the TARP/create the TALF/embrace a budget that forecasts a $1.75 trillion deficit].

Oh, really?

As originally published in the Los Angeles Business Journal-

Big Los Angeles companies such as Countrywide Financial Corp., Fremont General Corp. and IndyMac Bancorp - which are among the country’s biggest mortgage players - have fallen on tough times.  While man harsh words have been bandied about blaming them for much of the financial panic that we’ve seen in recent weeks, few critics look below the surface to find the true culprit; the Federal Reserve Board of Governors.