Monday, September 05, 2016

Federal Reserve Vice-Chairman Stanley Fischer
Admits That The Federal Reserve 
Endorses Wealth Inequality
"Federal Reserve Vice-Chairman Stanley Fischer made a couple of controversial statements this week regarding negative interest rates. Fisher admitted negative rates are bad for savers but they “typically they go along with quite decent equity prices.” .. There are two problems in play. The first is an explicit admission that the Fed sponsors wealth inequality. The second problem is Fisher does not understand how markets even work .. The U.S. does not have negative rates, but it certainly has had amazingly low rates. What Fisher said about negative rates applies equally well to low rates. By holding rates too low too long the Greenspan Fed created a huge property bubble. Who benefited? It certainly was not the saver. The beneficiary of the bubble was the equity holders and bank CEOs. Not only did financial insiders make a fortune in stock options in the runup, the Fed bailed out the banks after the crash as well."
- Mish Shedlock*
link here to the commentary


Anonymous said...


And now they are pondering negative interest rates, which have failed across Europe already. These academics, who’ve never worked a day of their lives in the real world, impose their demented monetary theories and guesses upon the citizens of the world, leading to havoc, chaos, heartache and ultimately war. When did capitalism devolve from saving and investing to borrowing and spending? Does 1913 ring a bell? Stanley Fischer, the vice chairman of the Federal Reserve revealed his disdain and contempt for the commoners in an interview this week:

“Well, clearly there are different responses to negative rates. If you’re a saver, they’re very difficult to deal with and to accept, although typically they go along with quite decent equity prices. But we consider all that and we have to make trade-offs in economics all the time and the idea is the lower the interest rate the better it is for investors.”

To paraphrase George Carlin, “he doesn’t give a fuck about you”. He knows there are more than 90 million American over the age of 55 in this country who are risk averse. Eight years ago they could earn a relatively risk free 4% in a money market fund. A retired couple with $250,000 could generate $10,000 per year in interest to supplement their Social Security. Today, due to the policies promoted and implemented by Fischer, Yellen and their cohorts, that couple can earn about $600.

To the masses: WAKE UP!

Anonymous said...

Where Has Hillary Clinton Been? Ask the Ultrarich

At a private fund-raiser Tuesday night at a waterfront Hamptons estate, Hillary Clinton danced alongside Jimmy Buffett, Jon Bon Jovi and Paul McCartney, and joined in a singalong finale to “Hey Jude.”

“I stand between you and the apocalypse,” a confident Mrs. Clinton declared to laughs, exhibiting a flash of self-awareness and humor to a crowd that included Calvin Klein and Harvey Weinstein and for whom the prospect of a Donald J. Trump presidency is dire.

Mr. Trump has pointed to Mrs. Clinton’s noticeably scant schedule of campaign events this summer to suggest she has been hiding from the public. But Mrs. Clinton has been more than accessible to those who reside in some of the country’s most moneyed enclaves and are willing to spend hundreds of thousands of dollars to see her. In the last two weeks of August, Mrs. Clinton raked in roughly $50 million at 22 fund-raising events, averaging around $150,000 an hour, according to a New York Times tally.

And while Mrs. Clinton has faced criticism for her failure to hold a news conference for months, she has fielded hundreds of questions from the ultrarich in places like the Hamptons, Martha’s Vineyard, Beverly Hills and Silicon Valley.

“It’s the old adage, you go to where the money is,” said Jay S. Jacobs, a prominent New York Democrat.

A family photo with Mrs. Clinton cost $10,000, according to attendees.

Lady Lynn Forester de Rothschild, a backer of Democrats and a friend of the Clintons’, made sure attendees did not grill Mrs. Clinton at the $100,000-per-couple lamb dinner Mrs. Forester de Rothschild hosted under a tent on the lawn of her oceanfront Martha’s Vineyard mansion.

“I said, ‘Let’s make it a nice night for her and show her our love,’” Mrs. Forester de Rothschild said.

Anonymous said...

How Central Banks Are LBOing The World In One Stunning Chart

Those wondering if this means that central banks are engaged in a
creeping, stealthy, indirect LBO of the world's assets on behalf of
third parties,

the answer is perilously close to a resounding "yes."