Money to Burn?

Fed $120 Billion Bailout of Emerging Markets
Stock-Markets / Credit Crisis Bailouts Oct 30, 2008 - 07:44 AM

"While all eyes were focused today on the Fed's rate cut, the big news was the Fed's latest cockamamie effort to save world. Indeed, just when you thought the insanity couldn't get crazier, the Fed announced it's now going to funnel a massive $120 billion of U.S. funds into Brazil, South Korea, Singapore, and Mexico.

And that's on top of the IMF bailouts already committed to the Ukraine ($16.5 billion), Iceland ($2.1 billion), and Hungary ($25.5 billion)!

In response, some folks are cheering with glee, blindly believing that Mr. Bernanke can play Santa Claus, the Pied Piper and the Fairy Godmother all in one act. But anyone with any experience with the real world is quickly coming to the realization that Mr. Bernanke is:

* Desperate- resorting to the most radical measures of all time.
* Playing his last cards- realizing that if these last-ditch rescues don't work, it's game over.

* Taking huge risks- that his rescue-the-whole-world schemes will backfire in the form of falling confidence in the U.S. government as a whole!"

- Martin D. Weiss, "Best Financial Markets Analysis" Article

Where are all these billions and trillions coming from?