And I’m not talking about Tuna Melts.? We started the day with JP Morgan snatching Bear Stearns for about 10% of their previous value.? They purchased them for a little over $2 a share.? In addition, the Fed is loaning $30 Billion of the American tax payer’s money to help shore up them up.? Isn’t that nice?!?

The Fed meets tomorrow and the number being thrown around is a .75% drop in the Fed Funds as the most likely scenario.? Some have even suggested 1.00%.? These decreases though have done nothing to help solve the credit crisis.

The news just gets worse and worse each day and I think fear will probably cause the demise of other institutions.? It won’t take too many big institutional investors to close their positions to bring other large firms down.

The Fed needs to get out of the saviour role and let the losses be had.? Let our dollar’s strength return.? Each drop in the dollar has corresponded to higher gas prices.? A double-whammy for people that live on fixed income.? The higher gas prices then bring everything else higher.

Here are some other links for your reading enjoyment.

• Don’t Blame Mark-to-Market for Banks’ Problems
• WesCorp Commentary

-- By Chris Duncan

Posted in Economy