Marc Faber and Bill Bonner on What the Fed Created

By on July 27, 2009

Bill Bonner, writing about the dreadful state of the economy, has quoted Marc Faber on his opinion regarding the stewardship of the Federal Reserve. Faber states, “In the period, 2001 -2007, the Fed managed to do something that had never before been done – create a worldwide bubble in just about everything. Stocks, bonds, art, oil, housing — you name it; it went up. The only thing that didn’t go up was the dollar.”

How did the Fed accomplish this? According to Bonner, “the Fed put the pedal to the metal following the nano-recession of 2001. It dropped interest rates to just 1% — well below the rate of consumer price inflation – and kept them there until an expansion had been going on for three years.”

What is the Fed’s response to the multiple bursting bubbles? More stimulus, of course.

Source:

http://www.fleetstreetinvest.co.uk/daily-reckoning/bill-bonner-essays/america-stimulus-depression-74711.html
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