Perhaps even PhD economists notice that manic-mania bubbles always burst–always. And just before they burst, devastating all those worshiping the Fed’s Golden Idol, pundits always declare “this time it’s different,” “the Fed has our back,” “stocks have reached a permanently high plateau,” “stocks have plenty of room to run higher,” and other platitudes mumbled by the Fed faithful.
Blinded by their own hubris, the Fed’s economists refuse to accept the impossibility of gently deflating the bubble they so recklessly inflated, and so their plan is to real quiet-like reduce the balance sheet, hoping nobody notices.
Perhaps they imagine they can lock the S&P 500 in at a permanently high plateau around 3,250, and that will be enough to banish the demons of a business/credit-cycle recession.
David Adams
Article URL : https://www.zerohedge.com/markets/just-friendly-heads-bulls-fed-just-slashed-its-balance-sheet?