Telling Fortune Article:

From April 14, 2008

The securities that Bear is shedding aren't worth $29 billion in
today's markets -if they were, Morgan wouldn't need the Fed's dough.
The Fed - which is to say the taxpayers - is eating the difference
between $29 billion and what that stuff is worth. It wouldn't surprise
me to see the Fed end up with a $4 billion haircut - but we'll
probably never know.

This is from an article about the Bear Sterns' collapse. Even Allan Sloan, who has been writing in the field for quite some time demonstrates his acute lack of understanding involving what really is occurring here involving the Fed and increasing the money supply. He points out that the taxpayer ultimately has to pay but fails to understand why that is bad.

It's not bad because it's an inconvenience. It's bad, becasue it slowly erodes the capitalist dynamic. If you read things closely enough, any wrter will eventually give himself away, and Sloan does so here. He reveals a belief that institutions once created become transcendental entities, no longer connected to the individuals who once created them. He points out, to reiterate: It wouldn't surprise

me to see the Fed end up with a $4 billion haircut - but we'll
probably never know."

What does he mean, we'll probably never know.? I know what he means. He means that if the Fed speeds past a red light and no policeman is there, then no crime was ever committed. What he fails to understand is that #1 Human beings behavior changes with conditioning. If the Fed doen't get caught at this, it will only do bigger and dumber things. and #2 Just because someone like him doesn't "see" it doesn't mean it won't show up as inflation and changes in the entire system the Fed is a part of.

Things like the Bear Sterns Bailout are very, very bad and they do cause significant changes in the system.

It's this sort of arrogance and lack of foresight that drives me nuts. This is a guy who has become such a believer in the establishment that he cannot imagine life without the establishment. He assumes the establishment is so credible, that whatever it does must be counted as honorable. It's a system too complicated for the average person to understand. Money disappears into it, but everyday people need not concern themselves with that. It's a complicated machine, the machine of financial progress and greatness, and very necessary. You and I can't be expected to understand it. But don't worry, everything turns out all right in the end.

Bull crap!

Does this guy fart. And if he does, does it not matter if it doesn't make a sound? Does that mean it never happened? Tell that to the guy sitting next to him in the movie theater. Bull