Monday, April 7, 2014

The Fed Monetary Bubble

In 2008, the Federal Reserve held $800 billion on its balance sheet. For the last few years, it has purchased over a trillion dollars in U.S. debt. The Fed has been creating a 100-year supply of money every year for the last few years. It currently holds a 400-year supply of money. The last times I saw something like this (late 90s stocks and mid 00s housing prices) they were later called "bubbles". Just wondering. 


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