SEC Fails to SEE. Bernard Madoff with Billions. Fed Defies Limbo Economy.

By now you may have heard about another scandal regarding investor money. The media is concentrating on the big players who were duped, the major charities that are out of business and the insanity at the SEC. Keep in mind however that $50 billion disappearing from the edges of Wall Street is like soil eroding from the beach. It makes it that much more likely that the economic ocean is going to gobble up our financial houses. So, to me it says this recession is going to be longer and deeper.

Here's a quick link to one Madoff Story, but just google "Madoff Billions" and you'll see what's going on. The Billions that no longer exist means that there are fewer potential private investors for alternative energy companies. Besides, investors will get more squeamish with what capital they do have, so we might be headed into a credit ice-age.

Now with interest rates at 0% what other tools can the Fed use to stimulate this economy? Hmmm. I wonder what "-2%" interest rates mean - i.e. the Fed gives Wall Street money to invest and pays them 2% to convince them to hold the money... Sound crazy? Well, when it happens, remember that you heard it here first.