investorzzo's picture

Lessons of the Great Depression have still not yet been learned

2. The Fed's role in sowing the seeds of destruction is under-appreciated

While the Federal Reserve isn't credited with doing all that much from the time that it was founded in 1913 until after World War I, that changed in a big way in the 1920s. As recounted in great detail by Rothbard, continuous "inflationary" policies by Chairman Benjamin Strong from the early-1920s up until about 1928 played a key role in the crash.

Kman's picture

Fed & MBS, Homebuyer tax credits

Interest rates continue to be at historical lows.  The $8,000 first time homebuyer and $6,500 repeat buyer continue to be in place.  Both or these have prevented housing from falling faster and farther than it should have.   However, come this Spring, the tax credits are set to expire and the Fed backing of mortgage backed securities is "supposed" to come to an end.  This could mean interest rates go up by 1% or more (or less) and $8,000 will not longer be availble to make that purchase.  Thus, house prices will continue their slide just as the Option ARMs star

investorzzo's picture

Federal reserve and war.

What most people do not understand is the relationship between the Federal Reserve and war. The Federal Reserve is responsible for every economic difficulty that afflicts our nation. Without a Federal Reserve creating fiat paper currency out of thin air, an empire could not wage continuous war. There is no clearer proof than evaluating major U.S. military conflicts prior to 1913 versus after the creation of the Federal Reserve. Between 1791 and 1913 (122 years) the U.S. engaged in only four major conflicts:


Lemonyellowschwin's picture

Fed Posts Record Profit

"WASHINGTON (AP) -- The Federal Reserve generated record profits last year, reflecting money made off its extraordinary efforts to rescue the country from the worst economic and financial crisis since the 1930s.

The central bank announced Tuesday it logged a record windfall of $52.1 billion. Of that total, a record of $46.1 billion gets turned over to the Treasury Department."


November Retail Sales Disappoint: Spin Machine Set on "High"

In This Newsletter
  • November Retail Sales Disappoint: Spin Machine Set on "High"
jneo's picture

Congress or The Fed

Who should be in charge of Monetary Policy, Congress or The FED?

Cloudfire's picture

An American Traitor Guts Ron Paul's Bill

An American Traitor Guts Ron Paul's Bill

Rep. Ron Paul, R-Texas, has complained that the bill he sponsored calling for an audit of the Federal Reserve has been "gutted" by congressional committee, pointing specifically to a legislator whose campaign coffers have been boosted by the banking industry.

Erik T.'s picture

Armchair musings: Something suddenly feels different

I generally try to approach investing in a methodical, disciplined way. In other words I like to feel that I really understand what's going on before making investment decisions. But sometimes I just get that "I smell a rat!" feeling, and the last several days have been very strong "something just feels different" days for me.

papaswamp's picture

Fed Purchasing Treasuries..

I know the Fed has been purchasing a huge number of treasuries in the past (about half)...anyway to find out how much the bought yesterday and buying today? Finding that info is ridiculously hard....must be all that transparency.

switters's picture

"Jaguar Inflation" - why the Fed can't create inflation at will

I recently came across this article written by Robert Prechter in 2004.  It's very relevant to the raging "inflation/deflation" debate going on today.  In the article Prechter uses an analogy to explain why the Fed can't create inflation at will, no matter how much it prints.