“The Fed’s Role in the Bear Stearns Meltdown” By MIKE WHITNEY (counterpunch.org url)
Weekend Edition
June 30 / July 1, 2007
A Subprime Chernobyl?
The Bank for International Settlements issued a warning last week that the Federal Reserve’s monetary policies have created an enormous equity bubble which could lead to another "Great Depression". The UK Telegraph says that, "The BIS–the ultimate bank of central bankers–pointed to a confluence a worrying signs, citing mass issuance of new-fangled credit instruments, soaring levels of household debt, extreme appetite for risk shown by investors, and entrenched imbalances in the world currency system."The IMF and the UN have issued similar warnings, but they’ve all been ignored by the Bush administration. Neither Bush nor the Federal Reserve is interested in "course correction". They plan to stick with the same harebrained policies until the end.
continued at http://www.counterpunch.org/whitney06302007.html
