As you know I have never had any doubt that the Fed directly caused the 2008 market collapse. Back in September 2008 I was calling attention to the fact that what the Fed was doing would cause a market crash.
Now I can also say, unequivocally, that the Fed’s actions directly caused the recession. By withdrawing funds from the SOMA to fund Bernanke’s mad scientist alphabet soup experiments the Fed crushed both the market AND the economy. The evidence is clear and irrefutable. The economy started down when the Fed started its withdrawals and it started back up when the Bernanke recognized his blunder and began to rebuild the SOMA.
I will discuss in today’s Radio Free Wall Street podcast, which I will post tonight.