Fannie and Freddie were long quasi-government corporations that typified the corrupt union between the feds and corporate America. But now it looks like both companies are just full-on government corporations.
The Fed says rate hikes are at least two years away. A lot can happen in two years, and since when is forecasting a couple rate bumps two years from now considered hawkish to the point of making the dollar pop and gold flop?
It's already clear that after an initial sugar high caused by stimulus funds, there's now hardly any "bang for the buck" from stimulus funds. In fact, governments are spending millions for each job "created" by stimulus.
Interventionism does not work because it misallocates resources in the economy. More importantly, it disturbs, distorts, and destroys the corrective process whereby market actors reallocate resources back into a sustainable framework.
In 2020, federal spending grew year-over-year at the highest rate since the Korean War. But state and local spending growth flatlined. Why? The answer lies with the Federal Reserve and how the feds can spend and borrow a lot more than any state.