Tuesday, October 14, 2014

Jim Willie: If the Fed ends Zero Interest rates it will destroy the big banks

2014 has been the year of the Federal Reserve acting like the European Central Bank head Mario Draghi in that they have talked alot about ending QE and their Zero Interest Rate policies (ZIRP), but heading into the end of the year the Fed has done neither.  And the primary reason for this according to statistician and founder the Hat Trick Newsletter Dr. Jim Willie, is that the big banks have become so reliant upon ZIRP that to remove it would mean the utter destruction of these primary institutions.
In an hour long interview on Oct. 12 with Elijah Johnson of Finance and Liberty, Dr. Willie laid out the two consequences that would take place should the Fed end ZIRP, and why these alone would be enough to destroy the JP Morgans and Goldman Sachs of the U.S. financial system.


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