by Pam Martens and Russ Martens
Wall Street on Parade
Thanks to the behemoth banks on Wall Street that engineered the largest Inside Job in the history of global banking and cratered the economy in 2008, retirees are now looking at a yield of 0.75 percent on a 10-year U.S. Treasury note. That paltry yield compares to the 4 percent or higher that retirees have been able to get throughout much of the last century on a T-Note.
The Federal Reserve is directly responsible for these unprecedented low yields. For much of the past 12 years, the Fed has been manipulating interest rates lower by buying up trillions of dollars in bonds (quantitative easing) in order to avoid crashing the Wall Street banks. The Wall Street banks are holding tens of trillions of dollars in interest-rate derivative bets — betting that rates won’t rise substantially or will drift lower. So the Fed has to make sure that’s what happens even if struggling Americans have to choose between paying rent or going hungry.