by Pamela Martens and Russ Martens at Wall Street on Parade
Wall Street veteran Nomi Prins’ new book is being released today with a title that should give every member of the Senate Banking and House Financial Services Committees pause: Permanent Distortion: How the Financial Markets Abandoned the Real Economy Forever. The book does what neither of these Committees has done for the American people. It explains how the financial crash of 2008 unleashed an unbridled and unaccountable Fed as Wall Street’s permanent sugar daddy, distorting market functioning with its perpetual money spigot to the point that markets no longer function as a pricing mechanism or efficient allocator of capital but more along the lines of a Ponzi scheme for the rich. Prins writes:
“Once central banks unleashed monetary policy to accommodate mega-banks, subsidize Wall Street financiers, and bolster global markets, the very idea of free and open markets and laissez-faire investing died. The threat of raising rates or ceasing to buy bonds could catalyze panic, instability, and chaos—so the threat was never issued. No one wanted to call the Fed’s QE a Ponzi scheme. But it was.”
The disparity between the Fed’s money spigot to shore up Wall Street versus the real economy is succinctly captured by Prins as follows:…
Continue Reading