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It is well known that there is a cycle to the economy, much of it dependent on confidence. As confidence rises, speculation and credit creation rise. It ALWAYS overshoots and returns to a baseline,,, or lower. This is the business cycle.
Many decades ago, the monetary authorities claimed that they had ended the business cycle and, we were on a permanent high plateau.
It all crashed a couple months later.
As is very well known, the tribe controls most of the financial industry.
The tribe can't stand any financial losses. They are always trying to defeat the business cycle. All the FED heads have been from the tribe.
The economy was cooling down in the late '90s. This would normally involves losses to speculators. A normal correction.
"Greenspan put was the moniker given to the policies implemented by Alan Greenspan during his tenure as Federal Reserve (Fed) chairman. The Greenspan-led Fed was extremely proactive in halting excessive stock market declines, acting as a form of insurance against losses, similar to a regular put option."
"Shortly after the market crash of 1987, the Fed cut rates, changing course in the middle of a tightening cycle. That action has famously become known as the “Greenspan put” because of the implied promise that central bankers led by Fed Chairman Alan Greenspan would bail out market participants who indulged in risky behavior."
They tried to stop the corrections of the business cycle. All that they accomplished was to postpone these corrections.
"“The Rediscovery of the Business Cycle – is a sign of the times. Not much more than a decade ago, in what now seems a more innocent age, the ‘New Economics’ had become orthodoxy. Its basic tenet, repeated in similar words in speech after speech, in article after article, was described by one of its leaders as ‘the conviction that business cycles were not inevitable, that government policy could and should keep the economy close to a path of steady real growth"
Paul Volker was the only FED head who was not of the tribe. He was Presbyterian. He wrote a book.
The Rediscovery of the Business Cycle Paperback – January 1, 1979
by Paul A. Volcker (Author)
Volker wrote this in 1979. This did not stop Greenspan from trying to backstop EVERY financial entity starting in 1989.
What next?
"The term Bernanke put has become almost as ubiquitous as the Greenspan put was during the late-1980s and 1990s. Derived from the concept of a put option, ."
Ben Shalom Bernanke is also of the tribe.
The tribe constantly worked to ensure that no financial institution ever lost a penny.
Powell's Fed Isn't About to End the 'Greenspan Put"
"Shortly after the market crash of 1987, the Fed cut rates, changing course in the middle of a tightening cycle"
This "change of course" is still with us.
Now, Yellen is at the Treasury.
"government policy could and should keep the economy close to a path of steady real growth"
This brought a steady growth of financial assets, NOT the real economy.
Tangible assets are now only valued at 6% of the entire asset world.
http://charleshughsmith.blogspot.com...es-in-sky.html
The vast majority of "assets" have NO relationship to ANYTHING physical.
The CBs can't slow down liquidity creation. You won't buy an asset if you don't believe that you can sell it later. If you buy very risky assets, you need to sell to a greater fool. The CBS are the self-appointed greater fools. Since EVERYTHING is over-valued, the FED must stand ready to buy everything.
The CB is supposed to take away the punch bowl when the party gets too wild,,, too risky.
Greenspan aka, the Maestro, doubled down on the punchbowl.
NOW, nobody can let off the liquidity creation gas pedal.
Many decades ago, the monetary authorities claimed that they had ended the business cycle and, we were on a permanent high plateau.
It all crashed a couple months later.
As is very well known, the tribe controls most of the financial industry.
The tribe can't stand any financial losses. They are always trying to defeat the business cycle. All the FED heads have been from the tribe.
The economy was cooling down in the late '90s. This would normally involves losses to speculators. A normal correction.
"Greenspan put was the moniker given to the policies implemented by Alan Greenspan during his tenure as Federal Reserve (Fed) chairman. The Greenspan-led Fed was extremely proactive in halting excessive stock market declines, acting as a form of insurance against losses, similar to a regular put option."
"Shortly after the market crash of 1987, the Fed cut rates, changing course in the middle of a tightening cycle. That action has famously become known as the “Greenspan put” because of the implied promise that central bankers led by Fed Chairman Alan Greenspan would bail out market participants who indulged in risky behavior."
They tried to stop the corrections of the business cycle. All that they accomplished was to postpone these corrections.
"“The Rediscovery of the Business Cycle – is a sign of the times. Not much more than a decade ago, in what now seems a more innocent age, the ‘New Economics’ had become orthodoxy. Its basic tenet, repeated in similar words in speech after speech, in article after article, was described by one of its leaders as ‘the conviction that business cycles were not inevitable, that government policy could and should keep the economy close to a path of steady real growth"
Paul Volker was the only FED head who was not of the tribe. He was Presbyterian. He wrote a book.
The Rediscovery of the Business Cycle Paperback – January 1, 1979
by Paul A. Volcker (Author)
Volker wrote this in 1979. This did not stop Greenspan from trying to backstop EVERY financial entity starting in 1989.
What next?
"The term Bernanke put has become almost as ubiquitous as the Greenspan put was during the late-1980s and 1990s. Derived from the concept of a put option, ."
Ben Shalom Bernanke is also of the tribe.
The tribe constantly worked to ensure that no financial institution ever lost a penny.
Powell's Fed Isn't About to End the 'Greenspan Put"
"Shortly after the market crash of 1987, the Fed cut rates, changing course in the middle of a tightening cycle"
This "change of course" is still with us.
Now, Yellen is at the Treasury.
"government policy could and should keep the economy close to a path of steady real growth"
This brought a steady growth of financial assets, NOT the real economy.
Tangible assets are now only valued at 6% of the entire asset world.
http://charleshughsmith.blogspot.com...es-in-sky.html
The vast majority of "assets" have NO relationship to ANYTHING physical.
The CBs can't slow down liquidity creation. You won't buy an asset if you don't believe that you can sell it later. If you buy very risky assets, you need to sell to a greater fool. The CBS are the self-appointed greater fools. Since EVERYTHING is over-valued, the FED must stand ready to buy everything.
The CB is supposed to take away the punch bowl when the party gets too wild,,, too risky.
Greenspan aka, the Maestro, doubled down on the punchbowl.
NOW, nobody can let off the liquidity creation gas pedal.
sale ole
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