The Fed, the White House and Congress are setting up the next financial bubble

By Stephen Moore – First, the Dodd-Frank regulations are causing one of the greatest consolidations of the banking industry since the Great Depression …

Finally, there is the saturation of debt. When the crisis hit in 2008 the national debt stood at a little under $10 trillion. Now we are at $18 trillion.

Government is hopelessly overleveraged. The interest rate exposure is enormous with each one percentage point rise in long term rates causing the servicing costs of the debt to rise by about $1 trillion over 10 years. Meanwhile, on top of that, the Fed owns at least $1 trillion in mortgage debt and so if housing markets fall again, taxpayers get double walloped. more>


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