Loading ...We are now in the situation where “an unstoppable force meets an immovable object”. It is almost unimaginable to allow for the case where the FED stops printing and then the market corrects down heavily. Yet it is also hardly possible to assume that the FED will just keep printing without any adverse consequences for the next 20-50 years.
Long poopcorn.
*********************************************
Certainly the Fed doesn’t want stock prices to go any higher. However the repo market has trapped them into a balance sheet expansion. We are entering a new paradigm.
***************************************************
Trump convinced us all that the markets are doing great because of him. Is this article, in a way, calling Trump a liar and that the everything bubble was created by the Fed and not by Trump? Next thing I am going to hear is that this wealth effect created by the high stock market was due to the Fed injecting it either directly or indirectly with free money, and not because of our chosen one, Donald Trump, unbelievable!
And just a note, this is obvious sarcasm on my part. Of course the economy is doing great due to the Fed keeping treasury prices low with their purchases so that congress can maintain their trillion plus deficits that are injected into this economy, and giving low interest loans that can be injected into all the markets, which keep them propped. Not to mention what the Fed is doing in secret. But I can’t tell you what the Fed is doing in secret, well, because it is a secret. How fast can the Federal Reserve create new money? Well, it depends on how fast their fingers can move by pressing all them zero’s after entering the 1-9 digits.