Wonkette

So here are three major factors that contributed to our country’s world’s current financial misfortunes: prolonged periods of historically low interest rates (even negative real interest rates), the complete deregulation of such derivatives as credit default swaps, and encouragement from Washington that the inflated housing boom was nothing to worry about. It’s rare that you can pin so many large factors on one person, but, well, former Fed chief Alan Greenspan set the low interest rates, led the pressure on Congress to keep derivatives markets wholly deregulated, and was the voice from Washington that said everything was fine. MORE »

Oh, so our president is giving a press conference, talkin’ about the economies and offshore drilling and such? It’s a slowish news day, so we might as well liveblog this dealy. Fix yourself a triple Wonkettini and join us after the jump for whatever jokes we can muster about the limp Dow, and smacking Fannie into a state of renewed arousal. MORE »

While the economy continued to melt down over the weekend, Federal Reserve Chairman Ben Bernanke spent a few hours hiding from his life at a Washington Nationals baseball game! Alas, he could not escape his horrible, horrible sadness: “Like at every other professional sporting event, a couple minutes is devoted to throwing out free t-shirts and Ben went after a free t-shirt last night like a man possessed. I have rarely seen such intensity in the eyes of a human being. …Yet, the look of agony upon Ben’s face when the t-shirt slipped through his finger tips struck me as odd.” It’s just one thing after another for this guy, right? [The Foodandbeermonger]

ECONOMY MADE PERFECTER: What is wrong with the Federal Reserve?! Today they cut the fed funds rate another .25%, bringing it down to 2%. Don’t they know that we have already achieved perfection and our economy is growing licketysplit? Meh, whatever. Let’s run with it and REFI REFI REFI! [NYT]

Today the Bush administration offered its brave response to the current financial crisis, as delivered by Treasury Secretary Henry Paulson. The administration has faced overwhelming pressure to give the government more oversight and regulation within the financial markets, since every major player (investment banks, hedge funds) keeps dying and then asks the government for money. And who better to ramp up regulation on investment banks than Henry Paulson, the former C.E.O. of Goldman Sachs! So what’s in his funny new oversight package, and how will it not do anything save the economy again? MORE »

The Federal Reserve cut the federal funds rate — its “big deal” interest rate — by another 3/4 of a percentage point this afternoon, bringing the number down to 2.25%. This is the second 3/4-point cut in recent months, meaning Ben Bernanke is probably on speed since that is a lot to cut. MORE »

This weekend, as our frozen credit markets and subprime space aliens took investment bank Bear Stearns — the fifth largest in the country — down, down, down into the ground, former Federal Reserve chairman Alan Greenspan wrote an article that saved the American economy. Hurrah! Regarding the moral hazard of huge companies taking inappropriate risks because the Fed will rescue their broke asses when it hits the fan (”they’re too big to fall!”), kindly old hobbit-sage Alan Greenspan offers these soothing words: who knew!? MORE »

Federal Reserve chairman Ben Bernanke testified about our flourishing American economy to Congress again today, and the economy’s just not good at all! He signaled more rate cuts would come to stave off the growing credit crisis, but balanced it with fears of inflation. As the Federal Reserve noted in its semi-annual policy report today, it foresees “a negative combination of below-trend growth and inflation rates topping 2% this year, though conditions are expected to start improving in 2009.” So we’ll have horrible stagflation for all of 2008, but Ben Bernanke will make 2009 wondrous! MORE »

It’s too late for this year, but maybe next Valentine’s Day you can give your favorite Libertarian a sweet treat that’s also a kick in the nuts to the ILLEGAL UNCONSTITUTIONAL “FEDERAL” RESERVE. Start stockpiling now! [RonPaulChocolate.com] MORE »

BERNANKE SUGGESTS FED MIGHT KEEP LOWERING A KEY INTEREST RATE: Continued housing and credit crises blamed for sluggish economy. Happy Valentine’s Day, we are all doomed! [AP]