The FederalReservenstein Monster

The central bank of the United States, the Federal Reserve, has created a monster. We call it the FederalReservenstein Monster because they have reanimated the dead economy of 2008 and created an economy which looks alive, but is not. When the financial world was falling apart in 2008, the Federal Reserve decided to reanimate the monster. The only way they knew how to save it was by printing money and to buy debt instruments from bankers with that money. This allowed the bankers to buy equities, sending them soaring. But, at the same time, those bankers decided not to lend that money into the economy to provide opportunities for businesspersons and jobs for laborers. The Fed was essentially “pushing on a string.” Unable to directly stimulate the economy, there have been no new full-time jobs created despite trillions of dollars which have been printed by central bankers. Quantitative Easing is just another word for Bankster Welfare. It is clear that the economy is not better off today than it was when Quantitative Easing first began. Oh, stock prices are in neverneverland in terms of historic overvaluation. Once again, the Fed's remedies have blown another bubble. And, we know what happens when the Fed blows a bubble—it eventually bursts and sends the economy deep into recession. Chart-wise, it's also easy to see where we are heading. If the Fed gets serious about tapering its QE policies, recession and a stock market crash are inevitable:

Posted in: Wall Street Trading