The 1990s had a broken yield curve and a Treasury fraud of mammoth proportions

I have the  federal funds, 2 year, and 3 month treasury yields, YoY, but something is wrong.  See if you can spot the broken system.


If you said that the three month rate is lower than the federal funds rate then you get a star.  The federal funds rate was effectively the six month rate, not the overnight rate.  Why on earth did that happen?

I have  the secondary market three month rate, the private lenders had set that rate, so obviously private lenders and borrowers knew full well the federal funds rate was the half year rate, and they were leaving money in the reserve for half a year.   The curve had effectively been inverted and three month bills were being used as short term cash.

Now Treasury should have been borrowing short term, at three months, and instead they were burying debt at the two to ten year terms.  Why?  Treasury obviously forgot how to count, and they cost the taxpayers a ton of money. So it was Treasury that likely caused the crash, paying to high rates, was it an inside deal? Where is Rubin?

From November to December 2007, he served temporarily as chairman of Citigroup^[3][4] and resigned from the company on January 9, 2009. He received more than $126 million in cash and stock during his tenure at Citigroup,^[5] up through and including Citigroup's bailout by the U.S. Treasury. He is currently engaged actively as a founder of The Hamilton Project, an economic policy think tank which produces research and proposals on how to create a growing economy that benefits more Americans.^[4] 

So we have our culprit for the final bonehead move of the Clinton presidency, Robert Rubin. Which numbskull followed Rubin into Treasury? Yep, you guessed, chief bonehead of Harvard, lead sec stagger in chief. What was the total cost to the taxpayers? Looks like we got ripped of for about 90 billion a year, for nearly five years; or 450 billion. Citigroup made out like a bandit, earning the six month rate on overnight funds and earning an inflated rate on two to ten year bonds.  There was no excuse, Clinton was wioping out debt, we had no obiligation to the debt cartel.  This was clearly an sider fraud by Rubin and Summers.

Who was debuty secretary when this started? Yes, that is from the Larry Summers wiki entry. He was in on the deal from the beginning.

United States Deputy Secretary of the Treasury
In office 1995–1999
President	Bill Clinton
Preceded by	Frank Newman
Succeeded by	Stuart Eizenstat

I call for the immediate arrest and prosecution of both Rubin and Summers.