Market veteran Lawrence McDonald has a stark warning regarding a recent GOP proposal spearheaded by Sen. Ted Cruz (R-Texas) that calls for nixing federal interest payments to banks.
What Happened: On Wednesday, McDonald, the founder of the newsletter The Bear Traps Report, posted on X, quoting a post by Bloomberg reporter Steven Dennis.
The post shared by Dennis features a fact sheet containing a proposal by Cruz to eliminate the interest rate on the reserve balances (IORB) program instituted in 2008. According to Cruz, the policy costs taxpayers more than $100 billion annually and has cost an estimated $1.1 trillion over time, with nearly half of it going to foreign financial institutions.
“It makes no …