Predictably, the politicians of both parties will take advantage of the Fed's never-ending largess, to borrow and spend in ways neither fruitful nor practical, for giant aircraft carriers or glorious projects that appease the egos of the wealthy and their puppets in the political class.
The banks and Federal Reserve must know that eventually the greed and incompetence of their vetted politicians will crush the entire economy, not only that of Main Street but Wall Street, too.
It's already happening. The price of gold rises dramatically. Manipulation of the price of COMEX contracts--not to be confused with real physical gold--has been ongoing.
It's doubtful that your average economics major has heard of the President's Working Group on the Capital Markets--the Plunge Protection Team, or PPT. Yet the current system is doing everything it can to sanitize the markets in such a way as to make them seem much more stable than they really are.
The great fear is that investors will make huge withdrawals that will trigger a collapse in the markets. The way it is, so many algos are just waiting for these kinds of market events, in order to exploit the volatility. With a lack of regulation, restraining this kind of trading is no longer feasible, except perhaps through a financial-transaction tax, a tax that has zero chance of passage--or about as much as Bernie has through a primary system designed to stop a populist like him.
Originally posted at author site:
johnbpeebles.wordpress.com/2016/02/25/119/
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