Ex OMB chief Stockman: "It is the biggest speculative disaster in human history."

Zero Hedge ^ | March 01, 2015 | Tyler Durden

[concernedcitizen76]

Thanks, Praxeologue. Rand Paul should tap you to help him audit the Fed.:-)

[Praxeologue]

I don't know how useful a Fed audit would be.

The Fed has dutifully financed the deficits that we and our politicians have incurred. /Bernanke

[Oratam]

Bkmk

[urbanpovertylawcenter]

Watch Gold and silver, when he big boys begin to talk it down and it strikes 7 to 800 dollars an ounce for gold and $9 an ounce silver, run!

[trebb]

I transferred my IRAs to an Allianz fund that guarantees 6% per year and more if the market goes up during the year (without dipping into your fund if the market crashes. Some restrictions but it also came with a 4% sign-up bon us to give the first year 10%.

Once again, there are restrictions and other things that may be an issue to some, but it works for me - I can let it stand for the next 8 years w/o needing to tap it for anything. It's a lot better than the sub 2% my Gov't TSP was in and so far above my savings accounts it's nuts.

[MosesKnows]

so far above my savings accounts it's nuts

The savings account may be nuts but if you believe 10% is guaranteed you may be nuts.

[Toddsterpatriot]

Money is lent by the Fed to private financial institutions.

Currently, $16 million.

The effect of money lent at near zero interest can be seen in the stock market bubble

The Fed doesn't lend "near zero". The Discount rate is currently 0.75%.

Traders can then borrow money on an overnight basis for five basis points, which is nothing.

Not from the Fed.

Buy anything with a yield like a ten-year or five-year bond or speculate in stocks that they think might be going up

Yes, traders sometime speculate with short term loans. That's what Bear Stearns and Lehmann did.

[Pagey]

bttt

[concernedcitizen76]

Are you then implying that the Fed’s rounds of quantitative easing had no affect on on the markets?

[Toddsterpatriot]

Nope. I’m implying that $16 million in overnight loans didn’t make the market go up.

[cornelis]

This is the money lesson they don’t teach: banking.

[trebb]

The savings account may be nuts but if you believe 10% is guaranteed you may be nuts.

6% is guaranteed - it's in writing. The reason for the 10% for the first year is that they provided a 4% "signing bonus" at the time I opened the account - it's in there.

[kvanbrunt2]

good point or make your own beer