The Traderszone Network

Published in TZ Latest News 22 May, 2015 by The TZ Newswire Staff

The Fed Hasn’t Solved Anything… All It’s Done Is Set Up an Even Bigger Crisis

The 2008 Crisis was caused by too much debt/ leverage, particularly in the form of illiquid derivatives (mortgage backed securities get the most attention, but the derivatives market was well over $800 trillion at the time of the crisis).

 

To combat the financial crisis, the Fed did three things:

 

1)   Cut rates to zero.

2)   Abandon accounting standards.

3)   Engage in Quantitative Easing/ QE.

 

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