Exigent Circumstances

Last week, the Fed added new programs and upsized many of the loan and bond buying programs it had a

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  1. Very thorough explanation …Thanks !
    yes, this path, if continued unchecked will lead the US to a crony capitalist state…and the corruption and stagnation that goes along with that…
    Lets hope it stops before that…

  2. Avatar for Trey Trey says:

    I recently watched Uncut Gems and it appears the Fed’s policy response and Howard Ratner have a lot in common. Will we get a different ending?

  3. Many might ask, what was the Fed supposed to do? Stand idly by while the country collapsed? Of course not, but it also should not abuse its stated power on a means justifies the ends basis… especially, when this abuse is a threat to the very system it is swore to serve and protect.

  4. I never understood that dramatic endgame… that of the central bank effectively taking over what were once private markets… which, I guess, is … nationalization of the stock market… I had used that term in regards to how much money they were pumping in to keep the market afloat, but I did not have the actual insight as to the reality that once the CB begins to buy the market…the market is beginning the process of going from private hands to the state’s hands…very powerful insight…it’s gonna be quite a decade…

  5. Vernor Vinge put the present and the natural outcome of these actions as follows: “It is a point where our old models must be discarded and a new reality rules. As we move closer to this point, it will loom vaster and vaster over human affairs till the notion becomes a commonplace. Yet when it finally happens it may still be a great surprise and a greater unknown.” I consider myself Smarter than the Average Bear (maybe from Lake Woebegone) but the dizzying array of Potemkin entities to shuffle money around the craps table makes my eyes glaze over. The end of private markets is nigh. What’s sad, I think is that the villagers are so consumed with “Socialist” policies of Sanders et. al., are child’s play compared to the amount of fudgery perpetrated on the good people of the US by the likes of Bernanke, Geitner, Yellen and Powell. Crony Capitalism. #BITFD, all of it

  6. It will be longer and more drawn out, much suffering until the townsfolk grab pitchforks and torches and march on Frankenstein’s castle er the FED, Treasury and White House (metaphorically speaking of course), and get the raccoons out of the C-Suites. It’s commonplace that management is regularly doing what “raiders” like “Chainsaw” Al Dunlap, Carl Icann, RonPerlman, Michael Milken and Mitt Romney used to do. Now it’s business as usual, Boeing, IBM, and the $700 billion the F, GM DELL TW and GE alone have borrowed to buy back stock and enrich management. Nothing to see here until they get rated to junk. Panic dumping by pension funds, market freezes. Gain control borrow to the hilt loot the pension fund and go belly up.

  7. Our author talks about “checks and balances“ yet they are fast disappearing as long as Trump is president. Congress is powerless to act: The Senate does what McConnell tells it to do and the House is in total disarray with special interest A fighting special interest B.

    As long as Trump perceives his “base“ as supporting his every move, I fear nothing will change. What scares me most of all is the increasing number of deaths and further damage to the economy that will likely occur as long as Trump is president. #BITFD indeed.

  8. Perhaps the notion that ‘The Fed’ is not ‘The State’, but a private for-profit entity is new to many here.
    Given that Central Banks are mostly owned by ‘Global Private Banks’, it is entirely logical that these ‘Central Banks’ will work to own profitable equity and dump the toxic debt on the balance sheet of the host nation.
    In this way the taxpayers are liable for the debt and The Banks take possession of everything they deem valuable.
    Doing this through a quasi-national institution protects them from any anti-trust or constitutional challenge, see?
    And funding the campaigns of every politician insures cooperation and protection.
    Watch as these banks set up streamlined foreclosure programs to again displace millions of Americans blindly wandering into forbearance agreements with little hope of making that balloon payment in 90-180 days.
    Watch the politicians cry about it and the courts support this ‘en masse’.
    Same as it ever was.

  9. Reading this I feel like I got hickeyed to death by falling into a pool of ACRONYM carp. Little by little the ACRONYMS suck the life out of me before I can climb out of the pool. They should put out a sign Citizens swim at own risk no life guard or any other checks and balances on duty. Someone should create a visual for this web of intervention.

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