By Clint Siegner, Money Metals Exchange
Americans hated it when the Federal Reserve handed trillions of dollars to crooked Wall Street banks following the 2008 Financial Crisis. Politicians were confronted about the merits of central banking and bailouts.
For the first time in history, college students were chanting “End the Fed” at campaign rallies as Ron Paul took the central bank to task during his presidential campaigns.
Virtually everyone in America vehemently opposed the central bank handing piles of cash to the same bankers whose greed and fraud had caused the Financial Crisis.
Little has changed, but the public’s revulsion taught them an important lesson. If they give handouts to greedy and fraudulent bankers, they had better do it in secret.
Avoiding a public outcry is probably why there is scant information about what is actually happening in the repo markets right now. The Fed continues to ramp up its overnight lending operations and has now poured in just short of three quarters of a trillion dollars in the past month.
The stated reasons for injecting all of this freshly printed cash are dubious at best.