Al Lewis of Marketwatch Says The Fed Has Been Stealing from Savers to Bail Out Banks

The Fed has been stealing from savers in order to bail out the banks. This is a form of corruption according to Al Lewis of Marketwatch. Now, one could say that the TBTF banks implosion would cause a crisis without the bailouts. But the Fed has not tried to wind down even one of them, so how do we know? Until the Fed tries and fails to wind down a TBTF bank, I will agree wit Al Lewis that low interest rates are a scam.

We know that low interest rates are controlled by the Fed and by the demand for treasury bonds in the swaps markets. We know that this forcing of companies to take the high interest rate side of the swap, while the banks bet on the rates staying low is a scam.

But we have to see the Fed try to wind down a TBTF bank to determine if the low interest regime is totally a scam. Our government should mandate that the Fed try to do so. Bill Seidman, before he passed away, said it could be done.


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