The greatest credit bubble in history. ibid.
Able to borrow money for nothing and earning huge fees for lending it out, Wall Street began simply giving money away. ibid.
‘It was a Ponzi scheme connived in by federal agencies. ibid.
‘The Bernanke Fed really blew it. They didn’t see it coming.’ ibid. commentator
The Problem with Models: A bank run but one that bore relation to those of the past involving not just the banks the Fed was created up to protect but the hedge funds, investment banks and insurance conglomerate the Fed had allowed to hide from its oversight. ibid.
So the Fed has revived the stock market downturn. It’s come up, and it said, ‘Folks, you can bail out the stock market, give us your junk bonds.’ That’s sort of like the Statue of Liberty for wealthy people. Give us your stocks. Sell your bonds. We’ll buy them all up at Federal Reserve expense and will purchase them. And we’ll also do our own forward buying to manipulate the stock market by promising to buy our stock, so the high price in the forward market. So that’s going to create a speculative demand for stock. So the speculative demand for stocks by Federal Reserve manipulation and the actual flow of funding money into the stock market from the government has been pushing it back up, giving the illusion of prosperity, at least for the 10 percent. Keiser Report, citing Nakedcapitalism online
Up at the top we have the Central Bank. And what do they do? Money Printer Go Brrrrr! Keiser Report 3rd September 2020
In one of the most overt criticisms of the Fed we have read to date, Marey writes that ‘while the Fed’s step to make the inflation target more symmetric may benefit the average American somewhere beyond 2022, it does not really address the deeper problem with the role the Fed is playing in the US economy. It could be argued that the Fed’s policies have become part of the problem, instead of the solution’. ibid. Zerohedge online
The much deeper problem for the US economy is the asymmetric impact of the Fed policies on households and businesses. The Fed’s monetary and regulatory policies have contributed to a form of capitalism where the rewards are going to the 1% and risks are borne by the 99%. The current crisis response has made it painfully clear again that the Fed’s policies benefit high income individuals and large corporations, while small businesses and low income individuals bear the burden. While the Fed likes to see itself as part of the solution to America’s problems, it should ask itself whether it is also part of these problems. ibid. Zerohedge
We’re just sending this country to its death, but we don’t know what to do otherwise we’ve got to save face, right? ibid. Stacy
Unsanitized: The Fed Is Overpaying Banks and Hedge Funds for Corporate Bonds. Keiser Report September 2020, prospect online
Wow. M1 money supply just exploded higher even further. The biggest monthly jump yet. The Fed is operating without checks and balances. Sven Henrich, Northman Trader twitter, cited The Keiser Report 2020
9 Trillion Dollars Missing from Fed, Fed Inspector General ‘Does Not Know’: Why we need to audit and shutter the US Federal Reserve. The Federal Reserve has nothing to do with the federal government and is not a bank.
Inspector general. What a laugh. This is not how democracy works. This is an oligarchy. The ‘bull markets’ over the past decade were based entirely on the Central Banks buying equities and recklessly providing hundreds of trillions in liquidity. Earnings peaked long ago, accounting gimmicks, buybacks etc. – only work until they don’t. In the USA, for example, Q4 saw Jerome Powell’s Federal Reserve provide 500 billion in QE, which he dared to say was not QE. Not only that, but what’s worse, much worse is the Federal Reserve is now monetizing debt, washed through primary dealers. Everyone made big money in the past decade, but this new decade we will see the ‘big unwind’, and it will be ugly. Mitch Feierstein, Planet Ponzi online
Reagan made Greenspan the most powerful banker in the world – the chairman of the Federal Reserve. Frontline: The Warning, PBS 2009
Greenspan argued that the Fed should never remove the punch bowl. But rather start refilling it when the party started to peter out. And if things went bad, the Fed would clean up the mess and tend to the hangover. Overdose: The Next Financial Crisis, 2010; viz Johan Norberg, Financial Fiasco