The Federal Reserve put is well entrenched. Their mandates used to be to hold inflation in check and to promote high employment. They are still interested in promoting high employment, but they want now to CAUSE inflation, and the number one priority in the last decade and counting is to see to it that the stock market keeps going higher and never fails. They are the true custodians of the stock market. Since they have an unlimited balance sheet, they think they are in control of things. We shall see. The skeptics think instead they are just making a dangerous bubble bigger and bigger.
Category: Federal Reserve
The Federal Reserve money printing is causing assets like the stock market to behave as if we were in a very healthy and even robust economy, which of course we are not. Don’t make the mistake and think that we are.
The Treasury and the Federal Reserve are bailing out virtually everyone, but who is going to bail them out?
The Treasury does this by taking on more government debt; while the Federal Reserve does this my magically creating money from simply expanding their balance sheet. In both cases, in other words, the money used to bail everyone out is created out of thin air. When this charade ends and this house of cards collapses, who is going to come to the rescue?
Recessions are no longer recessions.
Wizard of Oz in Washington
Naz reaches all time highs. The pandemic never happened — thank you Federal Reserve. And this despite 40m now unemployed. Just like the magic feats of the Wizard of Oz — the Feds. We live in a world of smoke and mirrors where reality is hard to detect.
Voodoo economics of the Federal Reserve works — until it doesn’t.
No More Recessions
Federal Reserve has now banned recessions — at a cost of 7 trillion. There will be no more recessions. So, in a sense, there is no longer any risk in investing in the stock market — it will always go higher, it will never really collapse. Kind of like the ultimate in chrony capitalism, no?
The stock market and the bond market are completely phony, but they are the only game in town, so everyone plays them, especially since there is so much cheap money around to play them with — cheap money as in free money from the Federal Reserve. It’s all insane, but what choice is there?