Crony Capitalism Accelerates

...or why I can't make any money shorting treasuries... 

First the Fed has been buying treasuries directly (i.e. printing money for the government), but now the banks are into this perpetual money machine at our expense (printing money for the banks profits first and government use second). Note their sweet quarterly profits. This is why we should not rejoice when the Fed stops direct purchases- their cronies are just filling the void. This scheme does not actually produce anything of value. Banks get profits, everyone else gets debt and inflation. Doubling down on the disastrous policies of the past.

"Borrow from the Federal Reserve at zero and lend to Treasury for a profit. That's some racket."

http://online.wsj.com/article/SB10001424052748704107204574475090112251868.html