Saturday, June 24, 2017

Don't Worry, The Fed Has Implosion Covered

But it only works when everyone has their head up their own ass, which is never a constraint on their model...

Using their patented driving forward by looking in the rear view mirror economic strategy, the Fed has successfully imploded EVERY bubble and EVERY economic expansion since their inception...




Looking at 33 US recessions since the 1850s, it finds that while many pre-WW2 recessions originated in the financial sector, most post-WW2 recessions were caused by monetary policy tightening and oil shocks...sentiment-driven swings in borrowing and investment led to recessions in both eras


The Fed is over-reacting to transitory commodity echo reflation caused by global coordinated Central Bank monetary expansion during 2016:



Banks are not impressed





"Sentiment-driven swings in borrowing and investment led to recessions in both eras"



"What about internet stock bubbles?"

Those are covered too...



But the key to Fed "success" is to "not see it coming", again, and again, and again...

Nasdaq with log scale Fed rate: