Posted on 06/19/2023 4:40:58 AM PDT by CFW
The conditions have now aligned for a repeat of the major stock market crashes that have occurred since the founding of the US Federal Reserve Bank (Fed) in 1913. Considering their vast experience and resources, the Fed has to know that their plan to control inflation by raising interest rates rapidly and significantly since 2022, and also tightening credit this year, will likely result in another major crash. Although the Fed has issued vague warnings about the impending pain on the stock market and economy, they have not explained how and why they will again wipe out trillions of dollars of wealth of unsuspecting investors.
As Marty Zweig, a successful Wall Street investment adviser known for data studies, warned, “Don’t fight the Fed,” because the central bank largely controls the direction of the stock markets. Generally, the major stock market booms start with the Fed stimulating slow economic growth by lowering interest rates, often while the government increases deficit spending. As Austrian business cycle theory predicts, this results in asset price inflation (e.g., stocks, houses, etc.), and sometimes also consumer price inflation. The major busts result when the Fed seeks to control the inflation by raising interest rates significantly, while the government reduces deficit spending.
(Excerpt) Read more at mises.org ...
The 2008 crash was because of the demoRATS in congress. All that free money and liar loans (no proof of income required) set the stage for the crash. They were building houses everywhere in 2006-2008 and free money to purchase them. Obummer got in because no one would expose him for the foreign national he was. Along with his degenerate background. The rest is history.
That’s strange since we just entered a bull market.
And Bush spending like a drunken sailor (no offense to drunken sailors)
And he never said a bad word about Hillary or Barry. But went after President Trump.
I supported him initially. His second term was the end of that.
Looking back or choice wasn’t great. McCain? Yuk!
From the article:
“1929—After the Fed cut interest rates from 1921 to 1925, the so-called roaring ’20s brought a booming Dow stock market from 1921 to 1929. After the Fed started raising interest rates in 1927, the stock market crashed in 1929 and the economy tanked. During the 1930s, the Fed cut interest rates, but President Franklin D. Roosevelt resisted deficit spending after 1932. The Fed even raised, before lowering, interest rates in 1935 to cause stock market losses and the recession of 1937–38. These policies prolonged the Great Depression until World War II, if not longer.”
I fear our government will instigate a world-wide war to distract from Biden’s corruption and destructive economic policies. Look at almost every politician cheering for a ramp-up of the war in Ukraine. What happened to all the anti-war protesters on the left?
ping
Yeah, McCain turned out to be a major idiot.
People here say McCain was the designated loser for 2008.
I tend to believe that’s actually pretty accurate.
The Fed is pausing to make Wall Street happy, no other reason. Having said that Wall Street knows an economic firestorm is coming they need to buy a little more time for companies that are listed to reduce their liabilities and overhead so when the crash comes they will be a bit leaner than they are now.
When the crash comes, it will start a period of deflation (that is what happens in a depression) and those holding liabilities such as debt, excess inventory and overhead will take a beating if those liabilities are funded at 2023 prices.
For the average Joe citizen the best thing to do is get rid of all debt and put something aside for a rainy day. If you are retired and your major source of income is in the form of a check from the US treasury and you have debt (mortgage, secondary mortgage, credit cards, personal loans & car loans) now is the time to get it paid off. Key word Now, not later.
Those who carry debt of any kind and limited cash reserves are putting themselves in a position to get crushed.
But what do I know, I’m just an average Joe also.
The Obama’s and Bushes go back to the 1970s. Not fast friends, longtime business partners when daddy Bush started Halliburton. Barky’s election was inevitable one GHWB became President.
Fast friends. Like when a doctor....that is a real one....passes a mortician, they wink
What is a privately owned “bank” misnamed “The Fed” (it is NOT Federal) doing controlling interest rates and production of currency?
D’oh!!
(lol)
Yep.
AGAIN, with this con?????
“What happened to all the anti-war protesters on the left?”
Good point. Maybe the media should look into that...oh, never mind. When we’re fighting someone evil, there are anti-war protesters everywhere. When it’s a government boondoggle war, the deep state is probably pulling fingernails, breaking kneecaps and/or killing and eating peoples’ pets to send the message of DON’T.
And Marilyn Quayle (?) in that pic too (somebody noticed awhile back)
Back in the days of Mena ..... oh, never mind
“I blame the 2008 crash on George W. Bush.”
As do I. Leaving interest rates as low as they were was ridiculous. Every unqualified buyer that could, was getting a loan and buying a house. Approvals were rubber-stamped. When home prices were rising faster than incomes could support, lenders were allowed to work some truly hocus-pocus k-rap to get people into homes. Home equity was treated like a bank ATM. Mortgages were sliced and diced and sold as “investments”.
Then, folks started missing house payments...
(I will say, while I don’t have a link handy, Bush did write a letter to Congress (?) or the Fed (?) urging the cutback on the current loose situation, as it was heading for trouble. But, he also could’ve done some executive orders to help the situation.)
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