And the Bailouts Continue

And here are the details on the latest plans by the Federal Reserve. First, they will buy up short-term debt so that banks can lend out more money to businesses which are currently having trouble getting more than a one day loan. The upswing of this is that businesses which are currently not able to get the credit they need to pay their payroll and buy inventory will be able to do so, hopefully building the economy back up. The downside is that it means even more of our money at risk. It also presents the possibility for a conflict of interest for the Fed. On the one hand, their job is to try to keep the economy healthy long-term. On the other hand, they have a responsibility to the tax-payers to protect these "investments" they're making.

And there are more loans to come. With entering the holiday season, banks need to have more cash on hand, which means more money printed and lent from the Federal Reserve. The increased printing of money could cause the overnight interest rate that the central bank offers to reach zero, so the Fed is going to be artificially paying interest to the banks that deposit money with it.

But there's more... The Fed is looking into how they can get into the unsecured lending markets. Yes, let's put tax payer money in even HIGHER risk investments.