Tag: asset bubbles

The Fed Already Blinked

The Fed Already Blinked

It would have made for great theater if the Fed truly wanted to win the war against inflation. Unfortunately, the Fed already blinked. If the Fed's mission truly was to get CPI back down to 2%, the valuation froth that began to manifest in 2019 peaking with 2021's valuation mania (which made the 1999-2000 dot … Continue reading The Fed Already Blinked

We Found The Inflation The Fed Is Looking For

We Found The Inflation The Fed Is Looking For

We found rampant asset inflation around most every corner. Frankly, it was not difficult to find. The Fed either needs to re-tool its definition of inflation or be transparent about the fact that it is working diligently to promote the wealth effect. Here are a few asset bubbles as measured from the market trough in … Continue reading We Found The Inflation The Fed Is Looking For

Fiscal & Monetary Policies Are Joined at the Hip

Fiscal & Monetary Policies Are Joined at the Hip

Fiscal and Monetary policy enjoys a symbiotic relationship. Both the fiscal side of the house as well as the monetary side believe (in true Keynesian fashion) that spending is the answer to nursing the U.S. Economy back to health. This shared philosophy ensures that fiscal and monetary policies - State-Led Capitalism - will be coordinated … Continue reading Fiscal & Monetary Policies Are Joined at the Hip

State-Led Capitalism

State-Led Capitalism

Private markets are no longer primarily determined by the actions of private buyers and sellers. The State now controls private markets as the primary mover. Guessing the timing, scale and duration of massive fiscal and monetary programs has superseded if not largely replaced fundamental analysis. That's not to say that fundamentals do not matter, but … Continue reading State-Led Capitalism