Can the Fed still rejuvenate the economy?

(Hat tip: John H. Detweiler) WASHINGTON POST - It is widely, though not universally, assumed that the Federal Reserve will soon move to bolster the economy by trying to nudge down long-term interest rates on Treasury bonds, home mortgages and corporate bonds. Just how much rates would decline and how much production and employment would increase are uncertain. What's clearer is that the move would be something of an act of desperation, reflecting a poverty of good ideas to resuscitate the economy. Read more at the Washington Post... Read More......

Class Warfare's Next Target: 401(k) Savings

INVESTORS BUSINESS DAILY, 2/17/2010 by Newt Gingrich and Peter Ferrara - You did the responsible thing. You saved in your IRA or 401(k) to support your retirement, when you could have spent that money on another vacation, or an upscale car, or fancier clothes and jewelry. But now Washington is developing plans for your retirement savings. ∴ BusinessWeek reports that the Treasury and Labor departments are asking for public comment on "the conversion of 401(k) savings and Individual Retirement Accounts into annuities or other steady payment streams." ∴ In plain English, the idea is for the government to take your retirement savings in return for a promise to pay you some monthly benefit in your retirement years. ∴ They will tell you that you are "investing" your money in U.S. Treasury bonds. But they will use your money immediately to pay for their unprecedented trillion-dollar budget deficits, leaving nothing to back up their political promises, just as they have raided the Social Security trust funds. Read more at IBD...
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