Price signaling is illegal, but not when the Fed does it.
When the Fed raises rates it will be a signal that determines the price of money. Since cash is king, that means everything.
What’s the transactional interpretation?
It looks like the Fed is determining the market trend, but not if it is reacting to the accumulation of wealth and power that actually determines it (called “making markets”) on demand.
“Market making” is a free enterprise. It is what big banks are in business to do. Securitizing the debt, for example.
After the Great Depression, big banks were broken up–deconsolidated–under the Glass-Steagall Act.
Mrs. Clinton says going back to Glass-Steagall is impractical. The way the financial sector is organized now (operating with the CFTMA, signed into law by her husband in 1999) is the best way to make markets more efficient. Sanders says breaking-up big banking is the best thing to do because, with the Great Recession as evidence, big banks intend to profit from the harm done, which Dodd-Frank says is “sure to happen.”
There is a random attribution at work, here, and (behold!) it is a work of art (symbolic value) that imitates life! Like in “The Big Short,” financiers don’t know when the big ugly monster is going to show up and consolidate the wealth of the nation.
It’s “sure to happen” but they don’t really know when, right?
That makes all the difference, doesn’t it?
Isn’t it time YOU make the difference!
Vote For Sanders!