Jim Grant Of Jim Grant’s Interest Rate Observer Has Some Choice Words For Fed Chairman Ben Bernanke

Posted By on January 28, 2011

Jim Grant is well known and respected in interest rate market circles, but he has some harsh words here….he’s letting off some steam on Ben Bernanke.  Pay attention everyone, Jim is one of the big ten….that is one of the smartest 10 guys around.

Jim Grant appeared on Bloomberg TV, telling Margaret Brennan upfront that Bernanke owes the world an apology. Grant’s criticism of the Fed should really start to grate on the Fed Chair: “I think what would be very good for the Fed if there would be a confession, the Fed should confess that it has sinned grievously, and is in violation of every single precept of its founders and every single convention of classical central banking”. Quantitative Easing is a symptom of the difficulties that the Fed has created for itself. The Fed is running a balance sheet which if it were the balance sheet attached to a bank in the private sector would probably move the FDIC to shut it down. The New York Branch of the Fed is leveraged more than 80 to 1. Meaning, that a loss of asset value of less than 1.5% would send it into receivership if it were a different kind of institution…The Fed is now in the business of manipulating the stock market.” Jim also has some very critical discussions on how the Fed never settles up on the $3.4 trillion in custodial debt on its books.

Listen to Jim Grant’s interview here: http://www.zerohedge.com/article/jim-grant-fed-now-business-manipulating-stock-marketshould-confess-it-has-sinned-grievously

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