In their minds the theory is perfect. In practice their perpetual add-debt-and stir policies have proved devastating for the real economy. Widely revered and misguided, financial academics have served as maniacal pied pipers leading the masses and their governments to fiancial ruin the past 15 years. And while the academics will deservedly lose reputation after the fact, the rest of the world will be left to pay the costs for years to come.
When the central bank was incremental in normalizing rates 10 years ago during a time of enormous froth in the housing, equity and credit markets, it led to huge distortions in the real economy.
“Finally, when the bubbles popped the whole house of cards came down.”
The Fed still hasn’t learned its lesson.
“[It] doesn’t appreciate the precedent of what they put the world through a decade ago and I fear they’re doing it again.”
Here is a direct video link.
;
