"I am right and you are wrong." -book by Edward de Bono [In deference to de Bono I must add that I am using the phrase with it's original meaning.] Indeed I

"I am right and you are wrong." -book by Edward de Bono [In deference to de Bono I must add that I am using the phrase with it's original meaning.] Indeed I am right and you are wrong. The foreign markets are punishing the Fed's moves. 1. Yes, BS was "projected to be worth less tomorrow". Until the Fed stepped in, JPM wouldn't touch BS without the Fed first taking the bad parts. 2. J.P. Morgan is buying only the "liquid" assets of BS; the Fed is getting the illiquid assets. Of course that's a sweet deal for JPM. It's a very bad deal for the Fed and the U.S. taxpayer. And part of the deal is a 6-month guaranteed bailout for hedge funds for the rich that have been posting returns from 20%-80% annually. Moral hazard never reached such scales before. 3. Drop the straw-man "this isn't a zero-sum game" statement: everybody knows that. The Fed's move is a redistribution of wealth regardless: wealthy investors are now wealthier than before the Fed stepped in and the value of the dollar is plunging further. 4. "There are smart people working there." How smart? I don't see the smarts oozing out today as the foreign markets punish the choices the Fed makes. Wait until the stock-buying public gets into this brouhaha. I would be the last to oppose the existence of the Fed, but today there I see only people who have their own and their mostly wealthy friends' interests in mind. 5. Sometimes inaction is best. Inaction would resolve the quandary more quickly by allowing the liquidation of BS assets on the open market and punishing wealthy investors for taking high-risk investments in hedge funds. All worthy goals. And that would happen without adding inflationary fire to the economy. 6. I don't relish "punishing investors" for it's own sake. But protecting high-risk investors against risk is foolish and, in the end, inflationary. "Caveat emptor" should apply to any investment. This is indeed "Socialism for the Rich".