By Richard Russell
After six years of creating an ocean of fiat money, it’s incredible, but now we learn that the US economy is again near recession. The Fed is intent on raising rates, but raising rates in a weak economy would almost guarantee trouble.
Thus the fed has backed itself into a corner. They misjudged the healthy instincts of the American people: the retail public has turned to saving and getting rid of debt. Meanwhile, stock valuations are part of the reality. What I’m afraid of, or what I foresee, is a huge crash followed by a relentless bear market.
The Fed, with its money machinations, has interfered or interrupted nature’s law. When a bull market runs to overvaluation, history tells us a primary bear market lurks just around the corner.
As I see it, the stock market is skating on thin ice. A rise in interest rates, set off by the Fed, ... Log in or subscribe to continue reading.