Valuable Secrets and the Return of Greenspan’s “Prophetic Touch”
Information about plans by the Federal Reserve to change interest rates could be turned into huge profits if it were known before the policy was made public. And it is wishful thinking to pretend that millions, easily billions, of dollars have not been made using just such inside information from th...
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| Published in | Deception and Abuse at the Fed p. 74 |
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| Main Author | |
| Format | Book Chapter |
| Language | English |
| Published |
United States
University of Texas Press
03.06.2009
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| Online Access | Get full text |
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| Summary: | Information about plans by the Federal Reserve to change interest rates could be turned into huge profits if it were known before the policy was made public. And it is wishful thinking to pretend that millions, easily billions, of dollars have not been made using just such inside information from the Fed. The Fed’s secrets have been widely disseminated to its employees and the favored few. Suppose someone was able to obtain definite information that the Fed was going to lower short-term interest rates (which would translate into higher prices for short-maturity bonds—interest rates and bond prices are inversely |
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| ISBN: | 0292717857 9780292717855 |