Monday, 27 October 2014

Keiser Report (E670): Market Cycle Horrors

Max Keiser and Stacy Herbert discuss the looming crisis as investors chasing yield have piled into obscure and less-liquid assets leading to sell-offs in the more liquid markets during panics as investors sell what they can. They also discuss Fannie Mae & Freddie Mac and the FHFA (Federal Housing Finance Agency) lowering bank obligations on buybacks in order to spur more subprime lending. In the second half, Max continues his interview with Mitch Feierstein of about financial markets on the precipice.

When it comes to conjuring money out of thin air the amount does not matter to those controlling the system. This situation can go on for a long time. It's just numbers.

However, the cartoon numbers hide the fact that the underlying economy is wrecked, and that the fictional monies are predominantly going to the top of the pyramid. They question being asked in recent episodes is how long can this game continue before serious damage occurs to the players, like the hedge funds.

[Posted at the SpookyWeather blog, October 27th, 2014.]

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