Monday, January 19, 2015

Stock market will collapse without Fed

As the Fed removes QE, it’s affecting all the markets. I mean, right now people are talking about oil prices which have dropped, you know, better than 40%. Well, one of the reasons oil prices went up so much was because of the Fed. Well, oil prices were not the only prices that the Fed helped to push higher. Stock prices, real estate prices, bond prices, all those prices are gonna come down without the Fed’s help. You know, just a question of time.

Oil drilling in USA
You know, and the Federal Reserve always wanted to claim credit for their policy’s positive effect on stock prices or real estate prices, but they never accepted responsibility for the similar effects and everything in oil prices because nobody was happy and, you know, unless you’re in the oil business, but the average American wasn’t happy about oil prices going up, but there were people that were happy about stock prices going up or real estate prices going up, but the Fed’s monetary policy affected all those markets and, you know, if they’re not gonna be there, all those markets are gonna come back down. 

That’s what people just don’t understand. The stock market is gonna collapse without the Fed, and if the recovery is built on a foundation of asset bubbles, well, when they deflate, what happens to recovery? It’s gone and we’re back in recession, which means they have to reflate the bubbles again.

Peter Schiff is a smart investor and author of several best selling books. He correctly predicted the economic meltdown of 2008 - 2009