CNBC; March 12, 2008; the Dow is at 12,156:
CNBC: “What’s not good about 400 points on the Dow?”
In-an-i-ty.
Later, CNBC asks Jim Rogers, “What would be the first two things you would do if you were in Mr. Bernanke’s seat tomorrow morning?”
Jim Rogers: “I would abolish the Federal Reserve, and I would resign.”
Indeed.
Everyone has probably heard the analogy of The Little Dutch Boy lately — as if the Fed and Treasury are the savior, bravely ignoring those who cry moral hazard and holding back the flood.
For a moment, imagine a different version of this analogy. What if it’s American individuals and families — and not the regulators and bureaucrats — who are the Little Dutch Boy? All of these bailout moves represent claims on the future production of individual Americans. In your mind, don’t make The Fed and Treasury the Little Dutch Boy.
What if they’re the water? What happens to us then?
