Jim Grant: "The Fed Owns The Stock Market"

Tyler Durden's picture

The dulcet tones of Jim Grant provided much food for thought on Tom Keene's Bloomberg Radio show this morning. While the interest rate observer did not change his tack on the extreme experimentation of world's central banks, he did have some new perspective on the incredible moral hazard (or unintended consequence) that is being created. One of his main criticisms is the incredible arrogance and conceit of a central banking system that believes it can see the future and thwart things before they come to pass, as he notes "I blame the central bankers for confusing the black art of central planning with the traditional art of central banking". He fully expects more easing by the Fed and its friends as he awaits their response to this latest stumble in the markets but what is most evident to him is that "The Fed owns the stock market" since they have financially repressed all investors into risky assets they now have been forced to have a moral responsibility to keep us safe in those assets - incredibly! The Fed is more likely than not to intervene with still more money-printing in any effort to keep this bubble afloat. What Jim focuses on is the morality in economics and the current immoral policies that have very bad consequences.


Jim's discussion of the Fed begins around 6:05 and he dives into financial repression at the 9:44 mark

Keene And Grant by user5452365

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EscapeKey's picture

Bloody hell, is that guy trying to get censored from CNBS?

NotApplicable's picture

Luckily for the sheeple, it's just Bloomberg radio. Last I checked, Stern was still on, so Grant's secret is safe.

bdc63's picture

... ? ... Bloomberg has a radio show? ...

AldousHuxley's picture

for those who don't know yet....


  • largest land owner
  • controls industries
  • controls trade ("Free trade agreements" are all contractual party by party basis)
  • controls money supply and banks
  • controls laws
  • controls your travel
  • 401k, IRA, social security, medicare, schools, courts, roads, airwaves, police, military, native american reservations, federal reserve, forrest preserve, pretty much every god damn important thing
  • even your paid off home, government owns it too (what do you think real estate tax is? )
Bear's picture

Well if they own my home, at least they could fix my leaky shower ... Drip,drip,drip

Manthong's picture

The subtext on this Jim Grant interview is that the Fed in now locked into some kind of moral responsibility.

Well, maybe that’s their thought, but if it is, then we are down to a good vs. evil proposition.

So, if you are for Fed policy then you are for financial repression and taking the people’s money and future productivity to reward failure and forcing people into the assets that suit your interests under a guise that this is in their interests. You are also for not allowing the market to determine price and to clear.

Therefore you are for financial slavery which is evil.

There can be no debate about this.

ndotken's picture

Your thoughts are the only thing that the government doesn't own .............. yet

NotApplicable's picture

A century of government schooling says you're wrong, statistically speaking.

ndotken's picture

Maybe they own yours ... but I can assure you ... they don't own mine

Umh's picture

Check out fMRI and visual images. They can do a half ass job of knowing what you are looking at and what words you're thinking of.

markmotive's picture

CNBC let ECRI on.

They even let ECRI's Acuthan repeat his recession call (when they let him get a word in):


JailBank's picture

I had the drip once. Turns out the government can't fix it. Penicilin did.

LasVegasDave's picture

Yes, but the Jews own the govt.

uh, right?

redpill's picture

And despite all that Aldous, some people still blame our current predicament on "free market capitalism!"

THX 1178's picture

Didn't free market capitalism generate the industrialists and other private sector so-and-sos who chartered the federal reserve. I mean-- people always say, "A central bank is a central plank of the communist manifesto... so the Federal Reserve is a communist socialist leftist liberal pinko commie institution..." and all this razzmatazz... But is was founded by big money. Who knows who was really there on Jekyll is. Rockefeller, JP Morgan, Jacob Schiff, Rothschild(s), Paul Warburg. These men were no bearded radicals and political strong men... They were businessmen who formed a cartel, not a central bank. Or at very least a hybrid of the two. And we know that the crash of 1907 was orchestrated or at least in part caused by Morgan flogging stories of bankruptcies-- this leads me to believe that private banks (today's BOA citi, JPM, and Goldman) are working with the FED. These banks I listed rose to the top because of free market capitalism. I'm not saying the government is any good, because it isn't and offers no solutions and wastes massive amounts of money (this is why I'm pretty convinced we are totally boned no matter what [and I support Ron Paul and his ideas, but am under no illusion-- he WILL NOT BE ELECTED]), but let's not act like the private sector gives us any freedom at all... It might have in the past, in 1776, before corporations took over and bought out the gov't... But now our planet is guided by a college of corporations. VP Cheney... VP Rockefeller... Obama's entire cabinet... does this not tell you al you need to know? Private and public have merged into one inseperable beast. 

Umh's picture

Most big business men are not free market capitalist. They may have been at some point, but after they get real big they would prefer not having to compete. They have the shear size that is required to deal with a monsterous government. This is why big government discourages small businesses; they can't hire specialist to lobby the government and battalions of lawyers, accountants and negotiators to deal with the gorilla's twitches.


It does seem like a moat:)


THX 1178's picture

I don't think big government discourages small business-- I think small businesses can't compete with big businesses because they don't have the money to influence policy. If government discourages small business it is because of the corps that influence them and the businessmen-become-politicians who are IN the positions of power.

Umh's picture

I don't think we are disagreeing. I mean that big government by it's very nature discourages small businesses. I've been on both sides; I've worked for the government and with it. A minor government functionary who acts in error is all it takes to put a small business in the hurt locker sometimes beyond recovery. I do know that defense contractors devote a sizable portion of their staff to negotiating with the gorilla. It's like the issue with all the 49 employee French companies; they are just unable to justify hiring 10 more people to hire the 50th one.

FWIW: my father ran a small business in the DC area and just flat out refused to do business with them. He had prior experience working for a large company that did work for the government.

Peter Pan's picture

Recession, depression, repression, repossession and so on until the funeral procession.

DCFusor's picture


TV is online too - same people but different programming at different time of day.


redpill's picture

Their radio feed is mildly amusing; if the market is in the red at all that day, they magically have a special guest on to talk about anything but the equity market for 2 hrs.

NotApplicable's picture

I used to watch some of their early-morning Aisan market coverage. Except for Monday mornings, that is. It wasn't quite as important as "Book Talk" (or whatever they called it). Nope, Asia could be in full meltdown mode, yet they're running the most boring hour on TV.

Perhaps Bloomie isn't allowed to compete against "60 Minutes?"

Chief KnocAHoma's picture

Yes he best be careful. The managers of the "Temple" don't like carpenters to come in and disrupt their money magic process.

That will get you nailed to a cross.

AldousHuxley's picture

government owns the land the temple sits on, the education received by the carpenter, the road carpenter traveled to get to the temple, the house carpenter lives in, the schools carpenter's kids are in,.......even the forest where the cross material came from, government controls it.


That's why the richest of the rich when they made enough billions, they all try to get to the next best thing.....government power.

Chupacabra-322's picture

@ AlsousHuxley, "That's why the richest of the rich when they made enough billions, they all try to get to the next best thing.....government power."

Actually it's Total Complete Full Spectrum World Domination/Control NWO.  Coporpate Control + Government Power = Fascism. 

NotApplicable's picture

Those consequences are far from unintended.

Zen Bernanke's picture

Grant's right.  But anyone who knows anything is well aware of this fact and is clearly more than happy to play along.  

Mercury's picture

"I blame the central bankers for confusing the black art of central planning with the traditional art of central banking".

That should all be in bolded red. That just nails it.

He acknowledges that there's an important role for a central bank...but also shows how they've just been swept away by hubris this time around and painted themselves -and us all- into a corner.


akak's picture

I disagree.

Central banking IS, by definition, "central planning".

There is NO moral, economic, or most of all monetary need for central banking!
Anyone buying into the banksters' self-serving lies and propaganda is just another victim of Stockholm Syndrome.

Centralized power is ALWAYS evil!

XitSam's picture

If it is centralized, can we bury them in concrete like Chernobyl?

akak's picture

You could try, but being the ultimate maggots, they can chew their way through almost every physical (and non-physical) impediment to their insatiable appetites.

Umh's picture

To the guy with a hammer everything looks like a nail. And it's hard to keep driving the nail in when it's already flush with the board.

Silver Dreamer's picture

"The banksters own the stock market."  There, I fixed it for him.

NotApplicable's picture

Yet some believe they cannot further expand their balance sheets to absorb even more tangible wealth secured by paper. To that I say: LOL, WUT?

Then I quote El-Erian: "Welcome to the new normal."

Umh's picture

It breaks sooner or later, but trying to time it is more than I am worth.

Chupacabra-322's picture

@ Silver Dreamer,

The City of London where the Banksters reside own everything.  Wall Street is just an extension of the City of London.

PeeramidIdeologies's picture

The TSX has been getting thrashed, but bounced back nicely today. Is the scared money starting to get the picture that Canada is the western worlds Great White Hope, or am I still too early on this one...

The Fonz...before shark jump's picture



I would agree with you but I fear that the bank owned consortium who want to buy the TMX (TSX/TSXV) is A WRONG MOVE THEY ARE GOING TO DESTROY THE CANADIAN MARKETS DO NOT LET THE BANKS BUY THE FUCKIN STOCK EXCHANGE

PeeramidIdeologies's picture

Fuk it, let em buy. There is very little competition in Canadian industries so it won't be too hard to figure out where the money will go. The more they buy the more I make, with a few early bets that is.

DosZap's picture


Bro, Canada has its own set of MAJOR leauge issues about to hit, their screwed too, but just behind the curve.

PeeramidIdeologies's picture

Ahhh but they are the best amoung the worst, and have everything the world needs. Fresh water, food, oil, metals, wood, cheap land with lots of development potential. Pretty decent infrastucture as well... The only downside is the neighbors and their cheap money. And winter. Attractive after a global shakedown? I think so...

El Oregonian's picture

Duh, do you think???

SheepDog-One's picture

Stock and bond markets now fully MONETIZED, owned outright by the global central banksters. What comes next is not nice, I guarantee that.