The Danger behind the Fed's Exceptional Profits

...one thing is certain: from the market point of view the Fed is a bankrupt institution. History provides an example of a currency backed by a phony real-estate market: French assignats, which ended up being completely devalued.

The only thing keeping the Fed alive is the protective umbrella of the American state and its legal-tender laws. This is not a parasitic relationship but a symbiotic one. What remains to be seen is how strong this symbiotic bond is and how long it will take to succumb to unavoidable decay.