Forget lower interest rates. For the Federal Reserve to keep the financial markets from imploding it needs to buy troubled mortgage bonds from banks and securities firms, say the world's biggest Treasury investors (Source: Bloomberg).
Step 1. Create a financial orgy thanks to the low interest rates environment created by Greenspan.
Step 2. Encourage derivatives/leveraging excesses with the excuse they create liquidity (as per Greenspan's testimony).
Step 3. Do nothing to avoid the housing debacle and the fall of the house of cards created by the financial system.
Step 4. "Bail out" the financial system by buying the financial garbage created with the blessing of a bloated bureaucracy which was supposed to supervise them.
More on https://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
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