It would seem the Fed has been prepping the market for a big announcement. It’s widely believed the Fed will announce once its intention to start shrinking it’s balance sheet today.
Some of that might be confusing so let me clarify…
When the housing bubble burst, the Fed responded by creating trillions of dollars out of thin air. All that money has created bubbles in stocks, bonds, corporate debt, even art and real estate have been affected.
So what happens to the economy when the Fed finally says, “We’re done, and we’re going to start pulling the money back.”
My hunch is we’re going to see an economy that wakes up from its heroin-induced coma and falls apart.
Today we’re going to discuss a great article from zero hedge that uses some mind-boggling facts about stock prices that will help put all of this into perspective.
I’ve also got a barn burner of a speech Maxine Waters gave recently. Get ready to be entertained and a little sick to your stomach.