David Stockman, Pres. Reagan's former budget director sums it up this
way:"The Fed [the Federal Reserve] is destroying the capital
market by pegging and manipulating the price of money and debt capital. Interest
rates signal nothing anymore because they are zero. The yield curve signals
nothing anymore because it is totally manipulated by the Fed. The very idea of
"Operation Twist" is an abomination."Capital markets are
at the heart of capitalism and they are not working. Savers are being crushed
when we desperately need savings. The federal government is borrowing when it is
broke. Wall Street is arbitraging the Fed's monetary policy by borrowing
overnight money at 10 basis points and investing it in 10-year treasuries at a
yield of 200 basis points, capturing the profit and laughing all the way to the
bank. The Fed has become a captive of the traders and robots on Wall
Street."What more do you need to know?
Who says cheetahs never prosper?