Investing

New York Fed Considering Becoming Sugar Daddy to Hedge Funds as their Distress Grows

New York Fed Considering Becoming Sugar Daddy to Hedge Funds as their Distress Grows

By Pam Martens and Russ Martens: January 16, 2020 ~ It’s apparently not enough of a billionaire subsidy for the U.S. Treasury’s Internal Revenue Service to give a monster tax break to hedge fund titans by allowing them to pay Federal taxes on the basis of “carried interest,” meaning that they have a special loophole to pay a lower tax rate than many school teachers, nurses and plumbers. Now, according to an article in the Wall Street Journal, the Federal Reserve is actually considering opening its super-cheap repo loan money spigot to hedge funds. It doesn’t get any crazier than this. Morphing from a central bank mandated to set monetary policy on the basis of maximum employment and stable prices, to the lender-of-last-resort to the criminally-charged trading houses on Wall Street and now, potentially, to the insider-trading/Big Short hedge funds, the New York Fed has totally lost its way if … Continue reading

Source: wallstreetonparade.com

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