THE MORE THE FED STRUGGLES WITH THE LIQUIDITY TRAP ...THE DEEPER IT SINKS...
THE BEST THING IN THE WORLD WOULD BE FOR THE FED TO JUMP RATES TO 1%...
YES THE MARKET WOULD CRASH FOR A COUPLE OF DAZE...BUT THE END RESULT WOULD BE A MARKET WERE MONEY HAS A PRICE...AND THEREFORE A VALUE...
THE FEDS ZERO RATES AND QE...OR SIMPLY FEEDING THE DEPRESSION AS ECONOMIC MODELS BECOME MORE UNRELIABLE...
IN MEDICINE YOU MIGHT SAY WE NEED THE "FEVER TO BREAK"...
OR BETTER YET FOR WALL STREET...AS AN ALCOHOLIC WOULD SAY..."WE NEED TO HIT BOTTOM"...TO FLUSH OUT THE POISON...
AND MORE FED QE WILL BE POISON TO THE ECONOMY AND TO THE MARKETS...
THE FED IS A THEORY TRAPPED IN A POLICY WRAPPED IN A MANTRA...
AND IT ONLY GETS WORSE FROM HERE... BUT REALLY...DON'T WE ALL KNOW THAT ALREADY...??
