With that as a basis, it is my contention that this action caught a lot of businesses and individuals completely off guard. Businesses found that their credit options became very limited in availability at a cost that they could afford. Individuals (even those with excellent credit) found the cost of credit being increased by a sizeable amount.
This has weaved its way through our economy, and is what is driving our present economic crisis - and our deflationary spiral. The Primary Dealers love deflation. It makes existing debt more expensive to pay off. Our Federal government hates deflation, and is stuck trying to create inflationary programs in an effort to maintain their power structure.
The Federal government loves inflation for the simple reason that it makes existing debt cheaper - and allows them to pass a "hidden tax" on to the public.
Most all of us are debt slaves - including the guy that defaults on his mortgage. The bigger banks (not regional or state) wind up with the wealth that the foreclosed property contained, unless they sell it again.
Bottom line, I believe you think the Fed is just "trying to do its job to pull us out of this mess". I believe that the Primary Dealers who completely control the Fed did all of this intentionally - and our government (federal, state, and local) is feeling the ramifications just like everyone else.
Primary dealers do not control the Fed.
pulled the easy availability of credit last year- with the express purpose of gaining more wealth and more power.
How do massive mortgage defaults give primary dealers more wealth or power?
The Primary Dealers love deflation. It makes existing debt more expensive to pay off.
Let's drive our customers out of business, we'll be rich!
The Federal government loves inflation for the simple reason that it makes existing debt cheaper - and allows them to pass a "hidden tax" on to the public.
Income taxes and benefit programs are indexed for inflation.
Most all of us are debt slaves - including the guy that defaults on his mortgage. The bigger banks (not regional or state) wind up with the wealth that the foreclosed property contained,
So Bank of America loans a guy $280,000 to buy a $300,000 home that's now worth $200,000. How does Bank of America get all that wealth out of the property?
Bottom line, I believe you think the Fed is just "trying to do its job to pull us out of this mess".
As a matter of fact I do.
I believe that the Primary Dealers who completely control the Fed
In your dream world, how do they exercise that control?
did all of this intentionally
Did all of what? Be as specific as you can.