#Buy startup panic free

“Whether it was done to soothe a stock market crash, a ruptured subprime housing market bubble, or a pandemic, the Fed’s response to the financial crisis of 2008 and later crises has confirmed that it will always seek a way to grease the wheels of capitalism for its wealthiest participants and private banks. Prins also demonstrates how the Fed’s policies have exacerbated wealth inequality around the world: In 2019, the top 10% of Americans controlled more than 84% of the value of financial accounts holding stocks.” They lived in the real world, not the paper one. “One major reason people’s economic conditions weren’t keeping pace with the rise in stock market levels was that many weren’t involved in the market at all. That meant it took $3.22 of debt to support every $1 of economic growth… Concurrently, the global debt-to-GDP ratio had risen to 322%. “By 2019, the total of assets held by the G3 central banks-the Federal Reserve, the European Central Bank, and the Bank of Japan-hit $13.5 trillion. She builds her case against the monetary policies of Bernanke and his successors (Janet Yellen and Jerome Powell) in the artful way that a master mason builds an exquisite rock wall - one carefully placed stone at a time. Prins brilliantly captures the insanity and mass hypnosis of regulators who have taken a hands-off approach to the Fed’s unlimited money spigot to the mega banks on Wall Street with indisputable facts and figures. And a year-long investigation of Fed officials for potentially engaging in insider trading continues. Congress curious as to why the New York Fed should have even one trading floor. The New York Fed has set up a second trading floor in Chicago near the S&P 500 futures market with not one member of the U.S. The former President of the United States, Donald Trump, who hammered the current Fed Chairman, Jerome Powell, with demands to keep the punch bowl flowing, is under criminal investigation for stealing Top Secret government documents. The man who first hooked up the feeding tube from the Fed to the grifters on Wall Street, former Fed Chairman Ben Bernanke, just yesterday received a Nobel Prize in economics. The timing of the release of Prins’ book could not be more appropriate as signs mount of how entrenched corruption has distorted the world in which we live to the point that it increasingly feels like a bad sci-fi movie. It was incongruent with the fact that during 2020 the number of US corporate bankruptcies hit their highest level since 2009, with 630 filings…” This was in stark contrast to abysmal unemployment figures still weighing on Main Street. This trading frenzy among institutional investors and a growing group of retail investors led Wall Street banks to smash earnings records in the third quarter of 2020. All that newly manufactured money turbo-boosted the stock market. It was 60% greater than it had been at the height of the post-financial-crisis period. On June 18, 2020, the Fed reported that the size of its book had expanded to $7.1 trillion…It was also nearly double the level it had been one year earlier. “The amount of money created to buy securities under its ‘no-limit’ policy over the course of just a few months was staggering.

The disparity between the Fed’s money spigot to shore up Wall Street versus the real economy is succinctly captured by Prins as follows: No one wanted to call the Fed’s QE a Ponzi scheme. The threat of raising rates or ceasing to buy bonds could catalyze panic, instability, and chaos-so the threat was never issued.

#Buy startup panic free

“Once central banks unleashed monetary policy to accommodate mega-banks, subsidize Wall Street financiers, and bolster global markets, the very idea of free and open markets and laissez-faire investing died. It explains how the financial crash of 2008 unleashed an unbridled and unaccountable Fed as Wall Street’s permanent sugar daddy, distorting market functioning with its perpetual money spigot to the point that markets no longer function as a pricing mechanism or efficient allocator of capital but more along the lines of a Ponzi scheme for the rich. The book does what neither of these Committees has done for the American people. Wall Street veteran Nomi Prins’ new book is being released today with a title that should give every member of the Senate Banking and House Financial Services Committees pause: Permanent Distortion: How the Financial Markets Abandoned the Real Economy Forever.