“Investors are being infantilized by the relentless Federal Reserve activity…It’s as if the Fed considers them foolish children, unable to rationally set the prices of securities so it must intervene.” – Seth Klarman, Baupost Group
This is indeed the Golden Age of Fraud, with those appointed to manage the system ethically and responsibly leading the charge. The actions at the Fed are conspicuously irresponsible, if not beyond appalling.
Wall Street on Parade posted a report on Friday detailing Jay Powell’s blatant conflict of interests in his dealings as the Fed Chairman in hiring BlackRock to prop up the financial markets. But I almost fell on chair from laughter when I read Powell’s response to a question from the NY Times about the nature of Powell’s four phone calls lasting a total of 90 minutes since March with BlackRock’s CEO, Larry Fink:
“I can’t recall exactly what those conversations were, but they would have been about what he is seeing in the markets and things like that to generally exchanging information. And he’s typically trying to make sure that we are getting good service from the company that he founded and leads. I’d say that’s his main objective when we talk.”
Powell must think that those who know enough to pay attention to what’s really going on are complete morons – or at least tragically gullible. A courtesy call to make sure the Fed is happy with BlackRock’s service? Is BlackRock the Maytag repairman? Of course Powell is happy. The value of his investment with BlackRock has more than doubled since BlackRock was hired to push the financial markets higher using the Fed’s printed money.
The system is openly corrupt now – these guys don’t even attempt to cover the obvious with cheap mascara anymore. Who’s going to stop these crony capitalists from completely looting the system? The SEC? The Justice Department? Sure, they’ll get right on that but first they too have to feed at the trough.
The wheels are flying off the system and those in a position to do so operate with brazen disregard for the law. The least Powell can do is apologize to his audience for assuming those paying attention are stupid enough to believe the pig vomit he regurgitates to the media and 60 Minutes…