Richard Field, director of The Institute For Financial Transparency, joins Jack Farley to argue that the Federal Reserve made a huge mistake during the Great Financial Crisis of 2008 and is making another one now. Field tells Jack he thinks that former Fed Chairman Ben Bernanke ought not to have bailed out the major investment banks, but rather should have let banks to realize the full extent of their losses and let the Federal Deposit Insurance Corporation (FDIC) shut down insolvent institutions and re-open them as entirely new banks. Field also tells Farley why he thinks the Fed’s current tightening of monetary policy is a mistake.
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(00:00) “Algorand Promotion”
(00:20) Chapter: Ben Bernanke's Nobel Prize
(04:34) Was Bailing Out The Banks In 2008 A Mistake?
(14:16) Would FDIC Insurance Have Protected Depositors If The Banks Didn't Get Bailed Out?
(28:02) “Algorand Promotion”
(29:47) Would FDIC Insurance Have Protected Depositors If The Banks Didn't Get Bailed Out?
(30:39) Were Zero Rates and Quantitative Easing (QE) A Mistake?
(37:03) "Insolvent Banks Can Still Lend," Says Richard Field
(52:02) "We're Headed For Deflation"
(54:37) If Hiking Rates Doesn't Curb Inflation, Why Do It?
(57:01) Just How Weak Is The Housing Market?
(01:18:05) Are The Major U.S. Banks Insolvent?
(01:27:56) "The Financial System Now Is More Opaque Than Pre-2008"
(01:37:34) Outro
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Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.