92.0: What FRONTLINE got SO wrong about the Fed LIVE!
———Ep 92.0 Summary———
FRONTLINE critiques the Fed for showering #BigBanks, #BigBusiness and #WallStreet with easy money, which reached neither the real #economy nor the vast majority of Americans. Yes to the latter, but no-no-no-no to the former. We did a 95-minute review of this episode and explain why the Fed is not central to money.
———Ep 92.0 Topics———
00:00:00 Frontline: the Fed is pumping billions of dollars into the financial system.
00:01:36 Frontline: the Fed is powerful and misunderstood.
00:04:38 Frontline: speculators crashed the system and the Fed rescued it.
00:12:14 Frontline: the Fed came up with the idea of quantitative easing.
00:14:28 Frontline: QE’s purpose was to lower interest rates.
00:18:04 Frontline: QE was to increase credit to the economy.
00:20:23 Frontline: QE was a new experiment because Fed officials said it was.
00:23:38 Frontline: QE flooded the economy with easy money.
00:26:30 Frontline: QE powered the stock market.
00:33:30 Frontline: QE disconnected stocks from the real economy.
00:35:32 Frontline: QE didn’t fix the economy because banks didn’t allow it.
00:40:40 Frontline: QE2 was necessary because the Tea Party hobbled Congress.
00:47:00 Frontline: QE caused inequality because money went to banks.
00:59:23 Frontline: Wall St. was so addicted to QE it had a taper tantrum in 2013.
01:03:09 Frontline: QE helped the rich. KASHKARI: We were helping the people.
01:10:07 Frontline: QE gave easy money to corporates who used it to buy back company stock.
01:17:41 Frontline: Shadow banks gorged on easy money, increasing system fragility.
01:22:21 Frontline: In 2020 the Fed saved the world from a true depression.
01:25:51 Frontline: The Fed saved risky parts of the financial system, like junk bonds.
01:30:46 Concluding thoughts on the Frontline episode, central banking and the media.
———Ep 92.0 References———
FRONTLINE The Power of the Fed: https://youtu.be/
The Power of the Fed (transcript): https://to.pbs.
Alhambra Investments Blog: https://bit.ly/
RealClear Markets Essays: https://bit.ly/38tL5a7