Wednesday, July 14, 2010

How Brokers Became Bookies: The Insidious Transformation of Markets Into Casinos

WEDNESDAY 14 JULY 2010
Share116 How Brokers Became Bookies: The Insidious Transformation of Markets Into Casinos
Tuesday 13 July 2010

by: Ellen Brown, t r u t h o u t | Op-Ed



(Photo: rtomazela)
"You all are the house, you're the bookie. [Your clients] are booking their bets with you. I don't know why we need to dress it up. It's a bet." - Sen. Claire McCaskill, Senate Subcommittee investigating Goldman Sachs (Washington Post, April 27, 2010)
Ever since December 2008, the Federal Reserve has held short-term interest rates near zero. This was not only to try to stimulate the housing and credit markets, but also to allow the federal government to increase its debt levels without increasing the interest tab picked up by the taxpayers. The total public US debt increased by nearly 50 percent from 2006 to the end of 2009 (from about $8.5 trillion to $12.3 trillion), but the interest bill on the debt actually dropped (from $406 billion to $383 billion), because of this reduction in interest rates.

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