Can the Fed Control Long Term Rates?

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The Fed controls short term rates, the market generally sets longer term rates. Thet banks borrow from the fed, and then they can loan out at a higher rate of interest ta earn the spread. It's hard to believe, michael, but back in 19 82, government bonds yielded over 16 %. So for for forty years almost, we've had declining interest ratesand i think it's going to surprise a lot of people what happens when interest rates turn and go back up.

In this special episode of the show Shermer and Green discuss one of the most important and yet poorly understood concepts in modern society: money and why it matters. They discuss: the origins of money, and how to make it work for you, how the stock market works, the power of compound interest, the secrets of millionaires, the difference between a IRA, 401(k), and a Roth IRA, hedge-fund managers and investment advisors, the relationship between risk and reward, the relationship between saving and spending, the problem with free market capitalism, money, happiness, and meaning, and the role of luck and contingency in how lives turn out.