As a Matter of INTEREST, Talk of Inflation Fear, the Fed’s Perfect Unwind, Concern about Wages is ALL Economic Denial

By David Haggith – Re-Blogged From Great Recession Blog

The Federal Reserve is now hacking its own zombie recovery to death and eating it by reversing the actions it employed to create this artificially supported recovery. Each time the Fed unwinds its balance sheet, 10-year bond rates recoil, and the stock market dances along in countermoves and wild swings. The main theme of my blog has always been that the Fed’s centrally planned economic recovery dies as soon as the artificial life-support is removed.

Blinded by economic denial because they are evangelists to the Fed’s religion, market pundits are finding any rationale they can to avoid connecting the Fed’s Great Unwind with these huge swings in long-term interest rates and the obviously corresponding counter-swings of the stock market. For those who have eyes to see, however, it should be clear that the world’s largest bond and stock markets are shuddering as the supports are removed.

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Trump Will Be ‘Fall Guy’ for Fed’s Mistakes

By Rob Williams – Re-Blogged From Newsmax

Peter Schiff, the chief executive of Euro Pacific Capital and financial commentator, said President Trump will end up getting blamed for market and economic turmoil caused by the Federal Reserve’s misguided policies.

That means Trump will lose the White House in 2020, and be replaced by a left-wing candidate who will expand the government’s role in the economy, Schiff said.

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Stock Selling Unleashed!

By Adam Hamilton – Re-Blogged From

The unnaturally-tranquil stock markets suddenly plunged over this past week. Volatility skyrocketed out of the blue and shattered years of artificial calm conjured by extreme central-bank distortions. This was a huge shock to the legions of hyper-complacent traders, who are realizing stocks don’t rally forever. With stock selling unleashed again, herd psychology will start shifting back to bearish which will fuel lots more selling.

As a contrarian student of the markets, I watched stocks’ recent mania-blowoff surge in stunned disbelief. On fundamental, technical, and sentimental fronts, the stock markets were as or more extreme than their last major bull-market toppings in March 2000 and October 2007! I outlined all this in an essay on these hyper-risky stock markets on 2017’s final trading day. The ominous writing was on the wall for all willing to see.

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Market “Earthquake Is Coming” – Icahn Warns “A Lot Of People Will Pay The Price Like In 1929”

By Tyler Durden – Re-Blogged From Zero Hedge

Billionaire investor Carl Icahn spoke to CNBC via telephone and had some very ominous warnings after what he has seen in the last few days.

Reflecting on the market’s moves recently, Icahn shocked the anchors by saying:

“This is something we’ve never seen before… I don’t remember ever seeing a market with this kind of volatility over two weeks.

The market has become a much more dangerous place [due to index funds and ETFs]… it’s like 2008 where everyone was buying mortgages and CDS.”

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Epochal Stock Market Flash Crash

By David Haggith – Re-Blogged From

It took sixteen months to build the exceptionally steep Trump Rally, and just one week to eliminate a quarter of it. While I wouldn’t call that jolting reversal a stock-market crash in the ordinary sense, the largest one-day point fall in the history of the market (by far) certainly marks a massive change in market conditions. From this point forward, it won’t be the same market it was.

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Greenspan Sees Bubbles in Stocks and Bonds

By Bloomberg – Re-Blogged From Newsmax

The man who made the term “irrational exuberance” famous says investors are at it again.

“There are two bubbles: We have a stock market bubble, and we have a bond market bubble,” Alan Greenspan, 91, said Wednesday on Bloomberg Television with Tom Keene and Scarlet Fu.

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Fed’s Policies About To Turn On Their Master

By Graham Summers – Re-Blogged From

The financial media is finally catching on to something we’ve been screaming about for years…

That the Fed’s preferred metric for measuring inflation is a complete joke.

Making matters more difficult, the Fed’s preferred inflation gauge does a pitiful job of capturing the quandary facing many households that live paycheck to paycheck. The so-called core PCE is the central bank’s go-to inflation metric. It is derived by netting out the necessities of food and energy from personal consumption expenditures. But the core PCE also minimizes the weight of rent and over-emphasizes health care due to Medicaid and Medicare’s inputs.

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