I am not a financial markets expert. In full disclosure, my eyes glaze over when too many acronyms are tossed about. I also do not know if the author, Jim Bianco, has a good track record with opinions.
With that said, it is concerning the Fed is nationalizing "large swaths of the financial markets" and combining the Fed and Treasury into one entity. The Treasury in control of the printing presses means artificial support of the markets. But it impossible to go one forever. Eventually, the individual investors lose confidence and pull out. I suspect if that were to happen, the Treasury-Fed would pump more money in to bolster. The runaway train will be in motion by that point.
My gut reaction is : back in the Great Depression, the federal government overtook control of the banking industry. You may have heard old timers talk about the "Banker's Holiday". FDIC is a remnant of the measures taken back then. The fed also confiscated (required it to be sold to the government for less than actual value) gold held privately from citizens. It looks like the same approach to me except the Fed wants to control financial markets rather than individual banks and precious metals.
If Bianco is accurate, this is a dire omen.
