I stop just short of “scam” as that implies illegality somewhere; this, however, was explicitly made legal by lawmakers – yet another example of turning something that ought to be against the law into a “haven” activity.
A number of commentators have raised the question of whether the low-interest rate policies of the Federal Reserve are stoking global inflation in commodities, food and energy. The answer to that question seems to be yes, but the inflationary pressure caused by the Fed’s purchases of US Treasury debt and zero short term interest rates is being manifested in many sectors and features the appearance of new “special purpose vehicles” in the insurance sector.
The reckless practices and financial transactions that led to the collapse of first Enron, then WorldCom and later American International Group (”AIG”) are alive and well, in large part due to the low-interest rate policies of the Fed and a good bit of credulity on the part of state legislators and insurance regulators.
Read the rest.
If you’re not outraged you need psychiatric treatment.