This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com

The Beard has a subtle message for the banks:

The amazing Michael Shedlock over at Mish’s Global Economic Analysis recently posted an article about leveraged buyouts and the effect of the current credit situation. Among many insights, he quotes an article from Financial Times that says:

Ironically, the Federal Reserve’s dramatic 1.25 percentage point cut in interest rates in January contributed to Harrah’s problem, because loans are floating rate and with benchmarks such as Libor dropping, returns to investors fall proportionately.

It seems that Bernanke agrees with the Fly’s sentiments. The Fed is clearly trying to save the economy from recession, and hang everyone else. The banks are getting no free ride here.

This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com