Aug 30, 2022

Another Financial Crisis?

Why is Jerome Powell confident that he can tighten policy enough to reduce inflation from 8.5% to 2% without causing another financial crisis? Thanks to the Fed's easy money, which created the inflation problem, the current debt bubble is much larger than the one that popped in 2008.

Powell Doesn't Realize How Vulnerable The U.S. Economy Is

Jerome Powell doesn't realize how vulnerable the U.S. economy is to higher interest rates as he thinks Fed policies of ZIRP and QE solved the problems exposed by the 2008 financial crisis. Those policies only made the problems worse, while postponing and exacerbating the consequences.

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