tag:blogger.com,1999:blog-2992740250270600844.post7471021522483664151..comments2024-03-24T05:26:32.964-07:00Comments on Advancing Time: Bernanke's Folly, Something We Should Not Buy! Bruce Wildshttp://www.blogger.com/profile/10181323607060607040noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-2992740250270600844.post-7038839060206115692015-10-14T06:24:21.257-07:002015-10-14T06:24:21.257-07:00Look at it this way. We should all be glad he'...Look at it this way. We should all be glad he's bragging so much in his new book. The timing is perfect because, the more he brags about saving the world from an economic crisis, which the Fed unwittingly engineered in the first place, the more he looks like a boasting fool when it all falls apart, which it started doing in August. The first proof of that came when Janet Yellen said the Fed would continue its ZIRP, and the stock market dropped. <br /><br /><br /><br />That was the surest sign you could ask for that the tide was starting to change. For the first time during the ongoing Great Recession, or Great Deformation, news of stimulus caused the market to think something was wrong. It was the market's first eye opening in the morning to an awareness that the Fed cannot end its stimulus or, in the very least, to concern that the recovery is so week that the Fed doesn't trust it to bear up under the headwinds hitting it from other parts of the world.<br /><br /><br /><br />The real crash will come when this dawning awareness becomes full realization that this means there really has been no recovery at all -- that the Fed's "recovery" is not (and never has had a chance of becoming) economically sustainable. IF people realize that the recovery was nothing more than a mirage that will dissolve the instant the free money ends, then panic will ensue.<br /><br /><br /><br />http://thegreatrecession.info/blog/stock-market-crash-2015-2/<br /><br /><br /><br />The Fed's stimulus has reached that extreme part of the curve of diminishing returns where continued stimulus is now proving to have negative results. So, if stimulus ends, the stock market falls apart immediately for lack of free money that was driving the market up; but each month that stimulus CONTINUES will now cause more and more people to fear it cannot ever be ended without a crash. <br /><br /><br /><br />So, Bernanke's game is ending just as his book comes out. Perfect timing for him to fall flat on his face. "I saved the economy!" Ooops. What economy? Where did it go?<br /><br />--Knave DaveUnknownhttps://www.blogger.com/profile/14223663384656024484noreply@blogger.com