Friday, September 14, 2012

Let's Keep Saying This Until It Doesn't Sound Crazy Anymore

WaPo's Zach Goldfarb:

If Fed could print money and give it to near-prime borrowers, undwater homeowners, and nervous businesses, then we'd have another story.
The Fed can print all the money it wants, but it can’t give it to the people who need it. Only banks, gov’t, Fannie/Freddie

I don't think Bernanke can legally start mailing checks to us, though I think when hits the "emergency powers" button he can probably do just about anything, but it isn't said often enough by the right people that there are alternatives to giving free money to banks, such as giving free money to me. At this particular point in time, those alternatives are clearly superior.

We have a problem that can be easily solved by giving free money to people, perhaps the most popular solution to a problem ever. And it isn't happening.