More steroids please
Not content with all the earlier financial bailouts and rescue packages from the world's politicians for the world's troubled financial centres (and all those now being offered), the 2008 stock market slide has seen the US Federal Reserve push the panic button overnight, serving up rocket fuel to add to the earlier diet of rocket fuel on which it had placed the US economy. Steve Horwitz points out what should be obvious to any intelligent financial commentator:
...excessive supplies of credit enabled mortgage lenders to give out high loan-to-value mortgages right and left, leading to delinquencies and foreclosures, supposedly leading to a weakening economy and a falling stock market, which the Fed is now attempting to "cure" by cutting rates by 75 basis points, which will inject even more funds into the economy.
Am I missing something here? The "hair of the dog" is not a good hangover cure.
And (to add to the metaphors) prescribing more steroids as a cure for excessive earlier doses is a sure sign of a quack doctor. That goes for financial quacks just as much as it does for medical ones.