Fed intentionally blowing bubbles

(via Prestopundit)

The current flood of cheap and easy money into the marketplace is causing asset price inflation (again), and the Fed is doing so consciously in its efforts to stop dreaded deflation.

The funny part is that even though the Fed is now explicitly admitting it's role in creating speculative bubbles (and dropping the fiction that it's due to 'irrational exuberance' or animal spirits or other such rubbish), the usual suspects still won't believe that the Fed is responsible, in large part, for modern day credit-driven business cycles...

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