By Mike Patton – Only two days before Christmas in 1913, deep into the night when many legislators had already left for the holidays, Congress passed the Federal Reserve Act, creating a “non-governmental” central bank – a bankers bank if you will – and charged it with the responsibility of controlling the nations monetary system.
Here’s the harsh reality. At some point, the Fed will have to start removing some of this excess capital from the system. This will be a difficult task. If they sell bonds too fast, it could cause bond prices to plummet. Moreover, any change in the Fed’s “easy money policy” would signal less liquidity for the stock market which would cause stock prices to collapse. more> http://tinyurl.com/n2tzx4w