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The Fed Dumped 300 Years of Money into Wall Street in a few Months
Part of “COVID recovery” was a quick injection of $3,000,000,000,000 to stabilize asset prices — and the bubble is going to burst
The Federal Reserve is the central bank of America. It is a quasi-public-private institution that, since its creation in 1913, has functioned fairly well. It is supposed to be the backstop to stabilize the American economy and the US dollar. It sets interest rates, is the “lender of last resort,” and tells the Treasury Department how many benjamins to print so they can be tossed around in Tekashi 69’s music videos.
But during the Great Recession, the Fed started to go rogue. Under the tutelage of Ben Bernanke, the institution made a series of moves that would alter our economy forever. Those moves made in ’08, journalist Christopher Leonard — the inspiration for this piece and the title — argues in his new book The Lords of Easy Money, “broke the economy” and created a situation the Fed is going to have a hard time getting out of.
The entire economy is a house of cards. The moment the Fed stops subsidizing Wall Street, there’ll be massive capital flight, defaults, markets will crash, and the economy will tank.
