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There is a "Devil's Pact" between Chairman Bernanke and his employers, the much too large to let fail Wall St. Banks. The essence of this pact is that Bernanke funnels taxpayer money to the banks receiving totally worthless collateral in exchange but in the understanding that the banks will send the money right back to the Fed to earn a totally risk free return (on other people's money).

This pact has several "advantages"

1.- It recapitalizes the banks to make up for the folly of their management.

2.- It does so with an "invisible tax" to which Congress turns a blind eye.

3.- Since the money goes nowhere the velocity is zero and does not cause inflation.

4.- Bernanke looks like a blood genius. Once when I asked my dad for a loan (which he rightly refused) he said to me: "Anybody can do it with money." All Bernanke needs (and has) is free access to your pocket.

This is all fine and dandy but what happens when employee Bernanke tries to take away his bosses' punch bowl? They are still the Masters of the Universe and more than likely taxpayers and the economy will be left high and dry.

Denny Schlesinger
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