Is the Fed Giving Banks a Way to Unload Risky Assets?

This may sound like a conspiracy theory – that’s because it is. I do not believe that this is really happening, but as an avid player of Chess – I like to look at things from different sides and 3-4 moves ahead. Okay, here’s the conspiracy……the Federal Reserve is pumping gigantic amounts of liquidity into the markets in order for the “too big to fail” banks to be able to unload risky assets at higher prices before the next crisis hits (and freeing up capital to boot). Once the sheet hits the fan, the banks will have “better” hopes of surviving. One good thing, if this is the case – it will be the trading robots that eat the losses. Imagine their drive home to tell their robot spouse...