We’re All Pawns
…in the Fed’s game.
Honest, I made the ‘pawn shop’ comment in today’s market wrap before I saw this from today’s Five Things:
1. Federal Reserve to Expand Lending
WASHINGTON, DC - The Federal Reserve, the nation’s fastest-growing operator of short-term payday lending branches and distressed securities pawnshops, said this morning it plans to expand from 12 regional branches to as many as 260 locations throughout America by year’s end.
The expansion is expected to cost between $750 billion to $1 trillion and will increase the types of items eligible for pawning at Federal Reserve locations. In addition, each new Federal Reserve branch location will include video lottery terminals, slot machines and a gift shop.
The Federal Reserve said the expansion plans will be dilutive to Fiscal 2008 earnings, but result in a more stable and diverse operating base for the company longer term. Meanwhile, as part of an aggressive marketing campaign to announce the new branches, the Federal Reserve said it will produce unlimited quantities of scratch off lottery tickets (formerly known as dollars) redeemable for prizes and eligible for use as collateral at foreclosure auctions.
I must admit though, Kevin outdid me. He even has a cool picture to go with his story:
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Somebody pawned my 401K without my permission. You know this scheme will have to be paid back in inflation.
Comment by Fred — 3/11/2008 @ 4:49 pm
And if things keep going this way, they’ll be asking for your tax dollars to pay off some mortgage-backed securities too.
Comment by BMB — 3/11/2008 @ 5:03 pm