Term Auction Facility

By admin, June 7, 2010 2:53 am

term auction facility
Do you think the Federal Reserver is the cause of the bubble in commodities?

I was thinking of the Term Auction Facility where the Fed is lending to various institutions. Institutions can use securities as collateral spam. If everyone is trying to blame commodity prices high on speculation, where will the money so that these institutions can buy to start? I have an idea that might be the money of the Federal Reserve is paying out. Is there any other than the Federal Reserve is the cause of this commodity bubble we are seeing?

It is possible that some of that money from the Fed in the markets over commodity. Until recently, the Fed will not lend money to investment banks on Wall Street. These banks had to raise money from private investors. But now these banks have much cheap money from the Federal Reserve. And to offset their losses in subprime mortgages, perhaps some of these banks are speculating in the commodity markets. Operating profit is what they seek.

Ron Paul’s Comments on AIG Bailout Tax Legislation



Leave a Reply

Panorama Theme by Themocracy