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David Stockman: We've Been Lied To, Robbed, And Misled

Monday, April 1, 2013 - 7:52 AM
And we're still at risk of it happening all over again.

“The banks quickly worked out their solvency issues because the Fed basically took it out of the hides of Main Street savers and depositors throughout America. When the Fed panicked, it basically destroyed the free-market interest rate – you cannot have capitalism, you cannot have healthy financial markets without an interest rate, which is the price of money, the price of capital that can freely measure and reflect risk and true economic prospects.  Look at the deposit rate right now, it is 50 basis points, maybe 40, for six months. As a result of that, probably $400-500 billion a year is being transferred as a fiscal maneuver by the Fed from savers to the banks. They are collecting the spread, they've then booked the profits, they've rebuilt their book net worth, and they paid back the TARP basically out of what was thieved from the savers of America."

- David Stockman
In his upcoming book, The Great Deformation: The Corruption of Capitalism in America

ShorebreakShorebreak2,381 posts since
Apr 6, 2010
Rep Points: 12,707
1. Monday, April 1, 2013 - 6:48 PM
Well said!
loulou521 posts since
Aug 3, 2010
Rep Points: 3,239
2. Monday, April 1, 2013 - 8:27 PM
David Stockman should be Secretary of the Treasury instead of the shills for Wall Street what we have now in the form of Tim Geithner, and nominated for the future, like Jacob J. Lew.
ShorebreakShorebreak2,381 posts since
Apr 6, 2010
Rep Points: 12,707