iow, yea it’s a shell game
the little bailout from doing the drive-by on Ghadaffi sure didnt go far
Drudge has a story indicating that CitiBank, Wells Fargo, and Bank of America arein trouble, as well. Plenty of available rooftops available, bankers...no waiting.
Congress needs to spend some time re-writing the Federal Reserve Act. Over the past seven or eight years the Federal Reserve has assumed powers never anticipated by Congress. Allowing them to build a long-term asset portfolio of over 3 trillion dollars, financed almost entirely by overnight deposits at commercial banks, is insanity.
The Fed is now running the largest positive carry trade of all time. It loses big if they allow interest rates to rise to “normal” levels, so they have a clear conflict of interest in allowing that to happen.
This is an area that Trump really hasn’t weighed in on yet and it will be interesting to see where he comes down on it when he finally does.