The Fed Gave Wall Street The Lowest Rates In 5000 Years & All Main Street Got Was This

Tyler Durden's picture

It's simple - in theory - a central planning body, who knows what is best for the rest of society, lowers interest rates (to reduce the cost of capital, encourage entrepreneurial actvities, and stimuluate the economy - and therefore jobs - for the average joes and josephines of the world).

So the 'smartest people in the room' cut interest rates, lowering the cost of capital to the lowest in 5000 years...


But a funny thing happens when the world is saturated in debt, leveraged to the max, and liquidified by lenders of last resort... the textbook breaks!

And the real economy "gets nothing"


But do not let that stop them trying it again.

Charts: BofAML

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
duo's picture

We got "the Obama."  Like the Buddha, he espouses certain truths, like "you didn't build that", and a religion has been built around him (or is it the other way around?)

messymerry's picture

Yeah, and most likely, we are going to get the Cankle...


bigkahuna's picture

Does not matter who is in the orifice - this mess is going to get cleaned up one way or the other. After this much malfeasance, things just start going wrong. It could be karma, it could be devine smiting - or just the plain old fucking breaks. Crap this long and eventually it explodes.

messymerry's picture

Smiting is such a good word...


DeepFriedLizards's picture

This  is classic.  5000 years OMG.

hongdo's picture

Is that longer than since Lehman?

Bunga Bunga's picture

It's all Lehman's fault.

Moe Hamhead's picture

Y'ain't seen nuthin yet!

max2205's picture

"I am with Stupid ---" t shirt


Arnold's picture

We'll get nirped on the flop.

scaleindependent's picture

Some folks got cornholed

J Jason Djfmam's picture

If you like getting cornholed, you get to keep getting cornholed.

"I need some TP fo my bunghole."

Francis Marx's picture

The god of mammon will be broken in all of this

LawsofPhysics's picture

We have seen the outcome of such "let the majority eat cake" monetary experiments before.  This one will end no differently.

K_BX's picture

workers get replaced as a too expensive input factor, whereas capital accumulates more capital. Productivity gains go to the owner of the business not the workforce...

J Jason Djfmam's picture

Robots replace workers, workers riot against robots, robots kill workers.

Who is going to buy this shit?

K_BX's picture

robots replace workers, workers work no more and live from foodstamps and other government subsidies...

jakesdad's picture

time to start an index fund of "mom's friendly robot co", cyberdyne & graystone industries?

honestann's picture

I guess you forgot their plan.  The top 1% intend to murder the bottom 99%.  The robots will then care for the top 1%, who refuse to work or produce.

The robots will then be compliant slaves to the predators.

That's their plan.  So far, it is working.

Will they succeed?  Probably.

RaceToTheBottom's picture

Financialization is the industry of the 1%.  Everything else can be and should be done by machines, according to the 1%'ers.

The forces of Financialization have accelerated after Nixon removed any last vestiges of dollar backing.

Niall Of The Nine Hostages's picture


The class war is real and the 30,000-odd members of the master class (not even close to one per cent---most of the 1% are hangers-on who will outlive their usefulness too) are winning.

The losers needn't expect any quarter. Wealth and idleness was only ever going to be a sustainable option for a few thousand people. Once the rest of us outlive our usefulness as tax and debt slaves, we're finished.

Robots will make far better New Socialist Men than humans ever did. They don't even have wants, just fuel and maintenance requirements.

K_BX's picture

nay! double trouble


I knew the trajectory was bad back in the 80s, but I never thought it was this bad. It's no wonder I have had such contempt for Greenspan all these years. Had I known that they were ripping me off to this degree I would have started looking at economics much sooner.

K_BX's picture

its easy: just btfd and then btfath.

Fluxite's picture

Dear Fed,


Thank you so much for allowing me to use your fake and printed USD to purchase gold at such a discount to whats its value realy is.


up, up and away on my beautiful, my beautiful baloooooon.... 



ebworthen's picture

All by design.  Immoral unethical intentional skullduggery.

Welcome to the Kleptoligarchy serfs!

Latitude25's picture

I have over 25 years experience in my profession as a substation engineer and I'm ready to just quit working literally keeping the lights on for this corrupt system.  What's the point in working when it's totally rigged?

Max Victor's picture



Yes the world economy is in distress!


Yes there is NO way out of this other than a crash!


Now get over it and ROCK!


And if you want to get off the oil dependency - try this:-


Duc888's picture



You're mistake is in thinking that "Central Planners" work for society.


Nooz flash, they don't.


Banksterz work for Banksterz and YOU....are lower than whale shit.

Fake Jim Quinn's picture

Simple explanation. When the world spent a lot of capital with machines and manufacturing, low rates mattered because capital was required and margins low. In the days of software with little capital spending and huge margins, a few hundred basis points don't matter. So all low interest rates do is to encourage stock repurchase and asset inflation. Old Yellen and old fed governors afre steeped in the 1970s text books. They simply don't get it

mcsean2163's picture

I think the participation rate is misleading.

Women were encoraged to enter the workforce and put their kids in childcare.  As time went on, more parents discovered that childcare is not bestcare and prioritise family over career. Tah dah!


It's not a bad thing.

Niall Of The Nine Hostages's picture

Yes. Male participation rates have been declining since the Fifties as manufacturing was automated or offshored. Of course, offshoring was too profitable for anybody to care.

White female participation only peaked in 2008. The economy ran out of jobs for Girl Fridays and the daughters of the one percent with useless LAC and MBA degrees started moving back into their old rooms after graduation, with little hope of finding employment or husbands worthy of their station.

Finally there was a crisis, because it affected NYC hacks personally. (Their spouses had really been hoping for their own rooms.) 

Our betters are always the last to notice the stink after they've fouled the nest.

Demdere's picture

As our leaders so often say, "Ideas have consequences."  This diaster is clearly linked with Progressives of both Left and Right.

hangemhigh77's picture

Let the lynchings begin.

fowlerja's picture what is the value of my money... let's see..what will someone give me if I put it into a bank..why guess that makes my money worthless as an investment...first time in 5000 years this has happened..on no..I don't think this is going to end well...