[Toddsterpatriot]

And then capture the profit or the spread between the cheap money that the fed is putting into the overnight market and the yield or profit they're making on the asset, and they're leveraging way up.

Why would the Fed be putting money into the overnight market?

[concernedcitizen76]

Federal Funds Rate is the interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution overnight.

The federal funds rate is generally only applicable to the most creditworthy institutions when they borrow and lend overnight funds to each other.

The federal funds rate is one of the most influential interest rates in the U.S. economy, since it affects monetary and financial conditions, which in turn have a bearing on key aspects of the broad economy including employment, growth and inflation.

[Mase]

Why would the Fed be putting money into the overnight market?

Have you ever noticed that David Stockman is never around at the same time as Paul Craig Roberts?

Coincidence? I think not.

[concernedcitizen76]

Bernanke, and now Yellen, have kept the the key overnight fed funds rate near zero to encourage large financial institutions to take nearly interest free loans and put the money into bonds or stocks. This has kept the debt expansion going and drives speculation in the stock market. All to good for fiend Obama. Obama enriched the 1% and .1% spectacularly. Their money feeds his campaigns, his pockets, and other lib pockets. On the flip side, enrichment of elites feeds class warfare, Obama’s stock in trade. It also gives Obama a battle cry to use in attacking the 1% and harping on middle class social justice and the rest of the Marxist talking points.