Tag Archives: collapse

The Sound You Hear is a Balloon Stretching

FED creates bubble

David Stockman (Fmr. Director of OMB under President Reagan) speaks out about the bubble being formed by the artificial stimulus policies of the Federal Reserve and U.S. Government. He says the stock market is up too due to the stimulus.

Is the whole world in a bubble? – asks the commentator.

YES! – Stockman says.

All of us need to take note and buckle our seats belts. There is no telling when the bubble will pop because the Fed/Gov seems willing to pump the balloon full of an infinite amount of air. Read and see more at CNBC…

QE3 – Bernanke Throws Gasoline on the Fire!

So here we are, QE3. Many of us watching this slow motion train wreck have been wondering when this big milestone would be reached.

“To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee agreed today to increase policy accommodation by purchasing additional agency mortgage-backed securities at a pace of $40bn per month.” - Fed launches QE3: the full statement – Telegraph.

I’m a bit surprised that the freshly printed money is being used to buy mortgage-backed securities. Tossing more money at these derivatives just seems like throwing gasoline on a fire to me – a very bad sign me thinks.

By the way, I really love this photo of Bernanke! It really shows his mad-scientist side well.