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Bove: The Fed is Bailing Out Countrywide

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Tags The FedCapital and Interest Theory

Punk, Ziegel analyst Richard X. Bove argues here that recent Fed policies and pronouncement amount to a bailout of Countrywide Financial. If so, then Bernanke's Fed is similar to Greenspan's in that the latter also directed Fed policy to help Long Term Capital Management.

Bove: The Fed protected "moneyed interests and bad business policies'' and "may have certified rather than prevented a recession. By allowing bad investment to remain in force, the Fed prevents the freeing up of money for good investments.''

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