Biderman – Who will Bail Out the Central Banks?

In a video evidently recorded Thursday, October 4  (judging by the scene of Richardson Bay north of San Francisco out the window), and published today, Trim Tabs CEO Charles Biderman sees painful irony in the actions of the central banks, who have apparently propped up the ‘stupid’ big banks by buying their toxic loans to “save them from their own stupidity.” 

“Do you see a trend here?  Big banks make bad loans and instead of those loans being written off, NO, the central banks save their big bank buddies. Now we are in the cycle where the central banks are all printing trillions of dollars, euros and yen to buy up all the bad loans made by the big banks – that everybody knows that the new money being printed can never be repaid. … The real question is, who will bail out the central banks?” – Charles Biderman  

 

Source: Trim Tabs via YouTube
http://www.youtube.com/watch?list=UU_FouojmbzN_jwBVkroDQBw&v=3lCxH2Ca9f0&feature=player_detailpage 

Comment:  Biderman takes a side swipe at the net effect - that the Fed is printing the trillions of dollars that Congress is overspending, then sending that fresh cash to the banks who turn around and buy the new government debt being issued - so the government can keep spending too much - for now. 

The supposedly "risk-free" government debt, which used to be considered a "risk-free return", has certainly become, in the words of Jim Grant, "return-free risk."