The Bernanke Helicopter Drop is Leading to Another Credit Bubble

The Fed is enabling free credit to consumers now.  I just got off the phone with someone who said that lately they've been inundated with 0% credit card offers - 0% for 12 months and 0% on balance transfers.  Of course, this is sheer insanity.  It would appear that the Fed/Obama are trying to stimulate another big wave of shopping mall/big box retail consumption. 

Lest you forget, credit card debt is unsecured, backed only by the full faith and credit of the consumer.  Also don't forget that a large portion of the big bank bailout was related to monetizing credit card defaults.

This is the ultimate result of the complete moral hazard imbued in our system now.  The Fed/Bernanke/Big Banks know that Geithner/Treasury will compensate them for any losses from default.  So they can lend away for free, make lots of money on hidden fees, late fees, over-limit fees, etc and face ZERO downside.

This will not end well for our system and especially not well for the Taxpayer.