The Almighty Fed

The Fed has always played a major role in influencing how we invest, what we invest in and how long we invest in a particular sector for.  They change the interest rates on us, influence the amount of money printed and determine (especially in this day and age) which banks receive capital injections. Don’t think for a second that it was Paulson, or now Geithner, making these decisions alone. The Fed keeps everyone on a tight leash.  Remarkably, the Fed is now under intense scrutiny as the politicians try and determine whether they pressured Bank Of America into purchasing Merrill Lynch. With the Fed’s almighty power over our capital markets growing by the day, it is imperative every investor understands exactly how it works and more importantly, that it isn’t a government body, but rather a business itself. The Fed is a game changer and must be followed diligently, otherwise we are doing our portfolios and financial future a disservice.

I’ve linked in a great video interview with G Edward Griffin. He breaks down, in detail, exactly who the Fed is and how it works. I think you’ll