Laissez Not So Fair

The Federal Reserve acted today to further attempt to stave off an impending credit crisis.

How, you ask? By instituting a mandatory cap on interest rates charged to consumers? Perhaps a government subsidized mortgage assistance program (which would benefit both the residents and the banks)? Or maybe by providing low-interest, short-term loans to economically troubled parties?

If you guessed option number three, you get a cookie. But that's all you'll get. The feds aren't offering this bailout package to actual human beings who could benefit from it. Rather, they are making available $100 billion in loans to troubled banks... who will then turn around and loan that very same money out to their customers at marked up interest rates.

Somewhere Adam Smith is puking into his cravat.