For five years we’ve been told that the world was in recovery. “Analysts” and pundits have trotted out every explanation imaginable for why things are in fact great and the marketsshould go straight up.
On top of this endless and mind-numbing chatter, the Fed has spent over $4 trillion… an amount larger than most sovereign economies. To put this into perspective, the Fed could have spent less money buying EVERY SINGLE ITEM OF ECONOMIC OUTPUT FROM GERMANY FOR A YEAR.
Between this insanity and the endless chatter of the world being great we have to ask… if things are SO great… why is it that even a 10% correction in stocks triggers panic from the Fed?
See the small dot in the chart above? That is the massive drop that caused both Janet Yellen and Fed President Bullard to verbal intervene to hold the markets up. They couldn’t even stomach a dip that barely registers on the five-year monster bull market without assuring the markets that they’d help.