The Great Recession was a result of a massive monetary policy error. The Fed kept rates too low for too long, which - when coupled with lax or no regulation in the mortgage markets - resulted in a housing bubble and a crash. This then bled over to global markets. We are again suffering the effects of a massive monetary policy error. The error has already been committed, but we have just begun to endure the consequences.
"Bob harrison has a ton of goldman stock and makes decisions on goldmans engagement/role in cgi, Bruce was paid by his law firm for years and may still be, People sit on boards, for profit ones and not for profit ones...I am sure there are many others we don't know about."
In an act that some have said reeks of symbolism, the tour bus of the Clinton campaign was caught dumping human waste literally on the street, or as some less politically correct commentators have dubbed the incident, "the Hillary campaign caught shitting on main street America."
The price of 'real assets' (real estate, commodities, collectibles) relative to 'financial assets' (stocks & bonds) are at their lowest since 1926, and, as BofAML's Michael Hartnett suggests "buying humiliation and selling hubris" as investors are being forced to discount higher inflation and interest rates, as protectionism & redistribution themes are also aimed at boosting Main Street at the expense of Wall Street.
"We really did appreciate when you were the senator from New York and your continued involvement, to be courageous in some respects associated with Wall Street and this environment. Thank you very much" - Tim O'Neill, Global Co-Head of the Investment Management Division to Hillary Clinton.
"the elite media wants to blame the phenomena of the Trump campaign on racism and xenophobia and, you know, small-mindedness of one type or another. But I think the underlying driver here, the underlying alienation comes from an economic policy that has benefitted enormously the bicoastal elites..."
The Fed argues that low rates have worked. The economy emerged from recession. Unemployment drifted back down. “Yay for us,” said the Fed. Don't buy that statistical economic garbage.The economy recovered in spite of Fed policy, not because of it.
"In a looping debate rant, Mr. Trump argued that an increasingly “political” Fed is holding interest rates low to help Democrats in November, driving up a “big, fat, ugly bubble” that will pop when the central bank raises rates. This riff has some truth to it... The stock market should be a barometer of the economy, but in practice it has become a barometer of Fed policy."
The Fed has created a situation where the housing industry is so dependant on the massive interest rate subsidy that any uptick in rates is likely to cause a cataclysm. The Fed and its cohorts are responsible for this mess. They have left themselves, and us, with no way out.
Most of the 90 minutes last night was a waste - with both candidates lobbing well-worn clichés, slogans and sound bites at the audience and each other.But there was one brief moment that made it all worthwhile.