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Chickens coming home to roost

[Crashcomingsoon]

Markets are just beginning to react to 35 years of reckless Fed (and other CBs) monetary policies. Japan is the first domino, but others will follow. It has a long way to run as the global economy sinks into a severe recession. The Fed will try to rescue the markets, but I think it is too big for the Fed.  There's a huge amount of debt globally. And things will only get worse after the US Presidential election.  Both Trump and Harris (Unbelievable that she would even be considered for President) will destroy the country.  Japan's tiny 0.15% rate increase killed the Yen carry trade that a lot of leveraged speculators depended on.  I think Doug Naland's final comment in this week's Credit Bubble Bulletin : Weekly Commentary: The Critical Leap is so true:

Manias are incredibly adept at fixating, obsessing, and imagining, all the while disregarding myriad risks. But they always come back to bite. This is going to bite real hard.

[Brianw21]

There is a very good show on YouTube called Panic which highlights the decision making during the WFC.  It shows how the Fed knew it couldnt fix the problem nor could it ask Congress for over a trillion dollars.  It is very enlightening. Cheers,