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| Fed chairman Jay Powell |
However, this doesn't mean I hold the view that we aren't in a Federal Reserve-manipulated boom-bust business cycle. We are and it will eventually bust. Though, I expect the first crisis to emerge will be an unanticipated acceleration in price inflation.
All this said, you have to be completely out of touch if you hold the view that everything is fine with the economy and that it will continue fine.
Remarkably, none other than Federal Reserve Board Chairman Jay Powell made the point in testimony on Capitol hill before the House Budget Committee that everything is fine.
“If you look at today’s economy, there’s nothing that’s really booming now that would want to bust. In other words, it’s a pretty sustainable picture," Powell said.
He actually said this as stock market indexes have been hitting new all-time highs.
#SavedForFutureReference
-RW
Its good to see you refer to the bust elephant in the room RW. JP's illusion is one many investors live in when it comes to the sustainability of the situation.
ReplyDeleteToo many fundamentals are putting on the brakes and the FED does NOT have the latitude it once did to out brawn the world economy like it once did. With that said it doesnt change that bust estimations as to when it all comes down is more like a roulette wheel spin then it ever was.
And when it hits. People are going to see some new levels of misery that will make 08 look a gentle time.
--“If you look at today’s economy, there’s nothing that’s really booming now that would want to bust. In other words, it’s a pretty sustainable picture," Powell said.--
ReplyDeleteAs if markets, asset prices, etc. had some kind of will of their own to boom or bust.