Fed News Friday: “Operation Twist is Going to Backfire and Hurt the Banks”
September 23rd, 2011It’s like an angelic voice that can not be replicated or restrained. Seriously though, the guys on the trading floor can’t even cut in while hearing Peter Schiff engulf the screen with the truth about the Federal Reserve’s next step to “save” the economy. Peter Schiff knows that the Feds won’t do it right because they never do it right, “because when we try to stimulate parts of the economy that are bloated, we inhibit the real restructuring that we need.” Brilliance!
Operation Twist is a new name, but this stimulus plan is packed with the same old, same old. The Fed wants to purchase more US T-bonds ($400 billion more) to ensure low interest rates. The funny thing is the interest rates can’t really get any lower than this. As Schiff said if the Fed doesn’t put together a QE3 package, there will be a Tarp 2, but no matter what there are no options left for the Fed and financial calamity will soon meet its maker.
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