Is the Fed a Perpetual Bubble-Maker? David Stockman discusses
Former Treasury Secretary Larry Summers warns that increased income inequality in the United States is reducing economic growth and drawing similarities to the wealth gap demonstrated on popular TV show Downton Abbey. But have Summers' past actions made him the wrong messenger? Erin Ade reports.
David Stockman, former director of the Office of Management and the Budget, joins Erin to discuss whether the Federal Reserve is creating destabilizing bubbles and liberating the financial system from the domination of government policy. Stockman talks about the connection between debt and leverage, whether we have more to fear from public or private debt, and whether our economic system embodies crony capitalism.
Wrapping up with "The Big Deal", Erin Ade is joined by Rachel Kurzius to discuss Kappa Beta Phi -- a Wall Street secret society infiltrated by New York Magazine reporter Kevin Roose, who found a surprising amount of leotards and an unsurprising amount of petit fours at the annual induction ceremony. Does the ceremony show that Wall Street scions can laugh at themselves, or is it an indicator of their detachment from Main Street?
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