World Bailout Wednesday

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Gird your coins — this morning the Federal Reserve announced this:

The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank are today announcing coordinated actions to enhance their capacity to provide liquidity support to the global financial system. The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity.

And in case you’re wondering how Warren Buffett could have been so confident investing $5 billion in Bank of America at a time that banks are once again on the brink, there’s this from Zero Hedge:

And finally, a promise to bailout Bank of America when it hits $4.00 again:

U.S. financial institutions currently do not face difficulty obtaining liquidity in short-term funding markets. However, were conditions to deteriorate, the Federal Reserve has a range of tools available to provide an effective liquidity backstop for such institutions and is prepared to use these tools as needed to support financial stability and to promote the extension of credit to U.S. households and businesses.

This means that the global situation is far, far more dire than the talking heads have said. Luckily, when this step fails, which it will, Mars can always come and bail us out.

The rationale for this action demonstrates Einstein’s definition of insanity very nicely:

The possibility that one or more European governments might default on their debts have raised fears of a shock to the global financial system that would lead to severe losses for banks, recession in the United States and Europe and another global credit crunch.

Bailout actions taken on a regional basis have only perpetuated the financial meltdown and harmed the economy, so let’s “fix” the problem by doing the same thing except on a global basis? That sounds about right.

In a very related story, you can probably kiss the euro goodbye. If they keep this up much longer you can kiss the dollar goodbye.

Author: Doug Powers

Doug Powers is a writer, editor and commentator covering news of the day from a conservative viewpoint with an occasional shot of irreverence and a chaser of snark. Townhall Media writer/editor. MichelleMalkin.com alum. Bowling novice. Long-suffering Detroit Lions fan. Contact: WriteDoug@Live.com.