The Fed caused 93% of the entire stock market’s move since 2008: Analysis

So in other words 7% of the market’s upside since 2008 is real. (I’ll bet even that is generous.) This should concern anyone who thinks that economics is more than smoke, mirrors, and animal spirits.

The economist who did this speaks of a tech bubble, housing bubble, and now Fed bubble. But it is really Fed bubble 1, 2, and 3.

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Get ready to be showered by helicopter money

Image: Socio-Economics History Blog

You’ve been warned for the better part of a decade that it was coming. Now get ready. Manna from heaven. (Well not from heaven.) Free money. It’ll be like that movie “Cloudy with a Chance of Meatballs” only instead of pizza falling from on high it’ll be cash! Oh happy day. I am already dumping the cisterns out so I can get as many of those greenbacks (if they aren’t outlawed) as I can.

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Former Fed President admits, The Federal Reserve “front loaded” markets, current market overpriced , “Fed has no ammunition left”, (VIDEO)

He basically said, We screwed up and the current stock market levels are baloney.

No big deal. It’s only the Fed. It’s only the WORLD economy which has been inflated and which you are now warning us must deflate to correct for the Fed’s mistakes. I mean it’s not like 2008 was created by the Fed or anything. So “watch out below” is the message huh? Thanks for the heads up.

It is interesting that Fisher makes reference to the junk bond problems of a few weeks ago.

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Poll: 1 in 3 Independent and Republican voters see the government as an “enemy”

Many people see the federal government as not reflecting their views at all. Some see the unending expansion of the state into every nook and cranny of life, and the gaming of the government by powerful corporate and political interests, as a real threat. Indeed that our massive government is encroaching on the things many Americans hold particularly dear, independence, for some – faith, economic liberty, liberty generally, privacy, and so on.

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Global wealth shrinks for the first time since Lehman

This speaks to the “financialization” of the modern economy we referenced in a post yesterday. In a fiat currency world the banks truly, and almost totally run the show. The central banks particularly. And the American Federal Reserve most of all. If one is riding the financial asset train one is likely better off than one was in 2000. If however one is not on that train, if one lives in the real economy as most middle class Americans do,

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Dow briefly plunges 300 points; biotech pushes Nasdaq 3% lower

We’ll see how the rest of the day pans out. At this moment we’ve got an hour and a quarter to go. But medium term sentiment on Wall Street appears to be be shifting as we see yet another day of broad selling.

It’s been a weird ride since midsummer. Mostly down but with a few big pops up. The Dow is off 2000 points or so from its high. People are starting to look around with a little more adrenaline in thier veins.

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Schiff: I’m right about the Fed, I’ll be right about stocks, “Economy rapidly decelerating”

3 bold statements just in the headline, but even CNBC granted that Schiff deserved to take what it called a “victory lap.”

Schiff argues that the Fed does not plan to raise rates at all because it can’t raise rates. 7 years ago with the start of ZIRP and QE Schiff says the Federal Reserve entered a “monetary roach motel.” That the Fed is now stuck. Which is of some concern to say the least.

It should be noted also that there seems to be a lot of talk about less than 0% interest rates as of late (LZIRP).

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Goldman Sachs should have died in 2008, Now its CEO, Lloyd Blankfein is a billionaire, Thanks taxpayers…Suckers!!!

There is some debate around here as to the world’s most crony company. There are many candidates but consistently in the top 5 or so is Goldman Sachs, Government Sachs.

Few companies have exploited the taxpayer and political connections to the extent Goldman has. Truly it is a company built fundamentally on cronyism.

In 2008 Goldman Sachs was leveraged more than 100 to 1 on its assets. (That is probably a conservative estimate.) When the economic tide turned it was fully exposed.

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The world is defenseless against the next financial crisis, warns ‘central bank of central banks’

The reason we had the Crash in 2008 was because the Fed kept rates too low for too long. In response to the tech implosion and then the 9-11 attacks Allan Greenspan and the FOMC panicked and ended up inflating a worldwide housing boom which morphed into the disaster (to put it mildly) which is the Great Recession. There’s more to it than that but that’s basically what happened.

Consider now that Ben Bernanke (and Janet Yellen) have kept interest rates much lower for even longer than Greenspan did.

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