This podcast picks up right where Part One left off, as Jim is about to discuss "the bond carry trade".
The Bond Carry Trade is the process by which, since 2009, the TBTF banks have been able to "pretty up" their balance sheets by showing massive profits on their bond portfolios. The banks borrow from The Fed at near-zero interest rates and they re-invest that same money into 2-3% yielding treasuries, keeping the spread and booking it as quarterly profit. This allows CNBS and other media to tout their equities as "cheap" and "undervalued" when, in fact, they are insolvent zombies.
As you might imagine, The Bond Carry Trade is only one of the topics Jim covers here so sit back, relax and enjoy yourself some Jackass. TF