RUSH: This is Jeff next, San Antonio, Texas. It’s great to have you with us on the program. Great to hear you. How are you, Jeff?
CALLER: I’m very fine. Muchas gracias, el jefe.
RUSH: Yes, sir.
CALLER: I wanted to share with you, you are accurate all the time. Over the last three weeks, you’ve been talking about the money supply and stock prices.
CALLER: Fifty years ago an economist, Beryl Sprinkel, wrote a book called Money and Stock Prices. And as my senior thesis in 1968 as a finance major, I correlated that, and it was right on, and that was Lyndon Johnson (unintelligible). But the second point where you were right, I had the privilege of serving on the Federal Reserve council, and I watched Alan Greenspan in our first meeting in July of 2005 step up and go on a rant for 15 minutes about but the systemic risk in Fannie Mae Freddie Mac. It wasn’t Republicans. It was the Congress wouldn’t change the rules.
RUSH: Oh, exactly. If anything, it was Bush-era regulators which were trying to get a handle on this and limit the damage, and was it people like Barney Frank and other Democrats who literally threatened these regulators during congressional hearings, literally threatened them with their jobs and so forth if they pursued this stuff. I’m surprised more people do not — you know when this whole subject of the disparity in wealth comes up and all of the scandalous talk about income inequality and the gap between the rich and the poor, I don’t know why more people don’t just utilize a little common sense.
This is not a backhanded way of praising myself, don’t misunderstand. But if you’re gonna print three and a half trillion dollars over the course of seven years now, and if virtually all of it is going to be used to prop up the stock market, end up one way or the other financing the purchase of securities and equities, which is what stocks are, then itÂ’s simple math. If you’re gonna throw three and a half trillion dollars to the stock market, you are doing two things, A, you’re flooding people who are in the stock market with a pretty huge guarantee of return on their investments, so their wealth increases. Second thing you’re doing, you’re insulating them from whatever else is happening bad in the economy. So while the economy may be spiraling down out of control in horrible shape, here’s Wall Street over here, which is able to report great guns, big guns, and that’s the primary reason for all this disparity.