Stockman – Fed is the Heart of the Problem
Former Budget Director under Ronald Reagan, David Stockman, said the Fed is “the heart of the problem and we have destroyed the capital markets,” to kick off this CNBC segment. Then he really gets going.
“Interest rates mean nothing. Everything is trading off the Fed,” Stockman continued, “In that environment everybody is being given the wrong signal.”
The frustrated, pessimistic economist has harsh words for the Bernanke Federal Reserve. “The Fed and these lunatics that are running it, and I use that word advisedly, are basically telling the whole world untruths about the cost of money, about the cost of risk, about how you allocate capital.”
Speaking specifically about republicans, Stockman carped: “Everything that Ronald Reagan stood for in the 1980s went down the tubes in September 2008 when they bailed out Wall Street – when they came in with this TARP (Troubled Asset Relief Program) which was an abomination. When they were unwilling to let Morgan Stanley go down the tubes, which it should have because of the speculation it was doing and (its) irresponsible reckless balance sheet it had.”
Much, much more in this too short video from CNBC. We found it worthy of sharing.