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The Biggest Uncovered Story Of Them All Starts To See Daylight

The New York Fed is doing a dog and pony road show to explain to market insiders, that yes, Virginia, it really does have the tools to control interest rates when there are $2.7 billion in excess cash in the banking system. The Fed is, after all, the great and powerful Oz. All we need do is click our ruby slippers and believe. The Fed will pull a magic wand from its toolbox, wave it around, shout “Abracadabra, rates go UP!” and voila! The market will believe and rates will magically rise, in spite of all that excess cash lying around.

Jonathan Spicer at Reuters is the first mainstream media guy to begin to pull the covers off this subject, which I have been ranting about for months. I just wrote about the credit he should get for finally giving this issue the light of day. It’s only the beginning. That post included a short clip from a Radio Free Wall Street video I posted on February 25 where I briefly and calmly raised this issue.

Just the week before, I had done a longer video about this issue. It was one of the more spectacular meltdowns that I tend to have when discussing the Fed. The following video is a condensed version of that program. I start out cool, calm, and collected, but you can almost see my blood pressure rise as I become more agitated through the duration of the rant. I hope that this helps you to understand the issue here, one of which may be that I am completely crazy. The question you must answer for yourself as you watch is who is crazier? Me or the Fed?

Enjoy.

Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also publish LiquidityTrader.com, and was lead analyst for Sure Money Investor, of blessed memory. I developed David Stockman's Contra Corner for Mr. Stockman. I’ve had a wide variety of finance related jobs since 1972, including a stint on Wall Street in both sales, analytical, and trading capacities. Prior to starting the Wall Street Examiner I was a commercial real estate appraiser in Florida for 15 years. I was considered an expert in the analysis of failed properties that ended up in the hands of bank REO divisions, the FDIC, and the RTC. Remember those guys? I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. I'm not some Ivory Tower academic, Wall Street guy. My perspective comes from having my boots on the ground and in the trenches, as a real estate broker, mortgage broker, trader, account rep, and analyst. I've watched most of the games these Wall Street wiseguys play from right up close. I know the drill from my 55 years of paying attention. And I'm happy to share that experience with you, right here. 

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