Of late the news has been filled with the doings of the Federal Reserve and other “movers and shakers” in the financial sectors. The media has generated “sound and fury” concerning rate cuts, emergency actions, etc.

I took up reading The Daily Reckoning a while ago. I had read other Agora newsletters before, but especially enjoy The Mogambo Guru. as well as Bill Bonner, so the “reckoning” seemed like a natural. Although it often contains more advertising than I like to include in Ender’s Review (true of the current Bonner piece), today’s Reckoning contains an insight which I find particularly “pithy.”

[T]he dirty little secret of America’s advanced capitalism is that it socializes much of the risk…and most of the losses. The big banks…big financial houses…or even the little householders…get in trouble and the government rushes to their aid. “Here, have some more money,” says the Fed.

Where does that money come from? It’s a long story…but it’s not a new story. It’s a story that was played out in ancient Rome…in 18th century France…in 20th century Germany…and now is a long-running show north of the Rio Grande.

Read the rest here.