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Saturday, April 21, 2012

Bernanke for Billionaires

"A major issue in this year's presidential campaign is the growing disparity between rich and poor, the 1% versus the 99%.  While the president's solutions differ from those of his likely Republican opponent, they both ignore a principal source of this growing disparity.


"The relentless expansion of credit by the Fed creates artificial disparities based on political privilege and economic power.


"The Fed, having gone on an unprecedented credit expansion spree, has benefited the recipients who were first in line at the trough:  banks (imagine borrowing for free and then buying up assets that you know the Fed is aggressively buying with you) and those favored entities and individuals deemed most creditworthy.  Flush with capital, these recipients have proceeded to bid up the prices of assets and resources, while everyone else has watched their purchasing power decline."


From "How the Fed Favors The 1%"  by Mark Spitznagel in the Wall Street Journal (subscription required). 


How the hell did they (WSJ) allow this opinion in their paper, anyway?

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