Two years after the 'flash crash,' markets are still vulnerable

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  • Eric Samuelsen Provo, UT
    May 11, 2012 11:08 p.m.

    Who says cheetahs never prosper?

  • SEY Sandy, UT
    May 11, 2012 4:14 p.m.

    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?