Instead of the Fed spending $700billion of taxpayer’s dollars on bailing out failed/failing financial institutions, why not just spend $100billion buying all of the major bond rating agencies? Once the Fed controls the rating agencies, they can impose a moratorium on ratings downgrade for all affected financial institutions for 1 year, along with banning short selling of the company’s stock for 1 year. That will do it.
Is this cheating? Of course. Wouldn’t this be government overextending it’s reach, of course? Ethical, hell no…But neither is anything else the government is trying, plus at least you’ll say $600billion in taxpayers money in the process.
See, this is what an Ivy League institution teaches you….if the system doesn’t work, change the rules.
