In a recent interview with 60 Minutes, Fed chairman Jerome Powell gave assurances that the US banking system is sound. Ben Bernanke also claimed almost twenty years ago that real estate markets were not overextended. The hubris must be in the water at the Eccles Building.
If the housing market is an indicator, the Fed's actions in slowing down the housing market soon will be reflected in the economy itself.
In a recent interview with 60 Minutes, Fed chairman Jerome Powell gave assurances that the US banking system is sound. Ben Bernanke also claimed almost twenty years ago that real estate markets were not overextended. The hubris must be in the water at the Eccles Building.
Mark looks at the disconnect between the Fed, the stock market, and the Real Economy.
Paying off the debt obviously won't happen, and the feds won't even contemplate anything that keeps the debt from getting bigger. They'll just try to inflate the debt away, so get ready for price inflation.
As the US banking system becomes increasingly unstable, the calls proliferate for even more government intervention into banking and finance. People forget that it was government intervention in the first place that caused these crises.
In this week's episode, Mark takes a quick look back at Fed wisdom in the year 2000 versus 2024.
In a recent statement, the Federal Reserve declared that US banks are "sound and resilient," but a lot of markets, including real estate, testify to a very different situation.
