A House of Cards

From the last article:

“The Fed cannot go on buying assets forever. When it pulls back, the markets will take it hard, as we’ve seen from past “taper tantrums.” And the longer it waits to take the markets off of their IV drip of gasoline, the worse it will be in the future. Prices will have even farther to fall, and the economy will be that much weaker because money that could have gone into productive activity instead will have gone to feeding ill-considered speculation.” 


This will continue to be the case, with the market strongly rejecting the 10-year bond prices above .9%, and the verdict of Jerome Powell’s Federal Open Market Committee meeting yesterday.


There is simply massive economic risk of historical magnitude that cannot be ignored, and markets will reflect reality as time goes on.



Upon the announcement of continued quantitative easing and near-zero interest rates until 2022, Bitcoin spiked violently to $10,000 and rejected, ending today at $9300. Bitcoin will certainly have a place in all of this as many larger figures and institutions show interest in it, but it will likely continue its correlation with the traditional stock markets in the near term.


Stay safe!

Leave a Comment

Your email address will not be published. Required fields are marked *