Central banks are on a global corporate buying spree not to bail out bankrupt corporations but simply as an investment, to compensate for the loss of bond income due to record-low interest rates.
With the Dow Jones industrial average flirting with a record high, the split between American workers and the companies that employ them is widening and could worsen in the next few months as federal budget cuts take hold.
Huge banks must be restructured and their access to the safety net scaled back, Mr. Fisher said, because neither regulators nor market participants have proved effective in monitoring risks at these institutions.
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