{"id":390622,"date":"2018-12-26T19:45:32","date_gmt":"2018-12-26T18:45:32","guid":{"rendered":"http:\/\/rinf.com\/alt-news\/newswire\/good-for-powell-lewrockwell\/"},"modified":"2018-12-26T19:45:32","modified_gmt":"2018-12-26T18:45:32","slug":"good-for-powell-lewrockwell","status":"publish","type":"post","link":"http:\/\/rinf.com\/alt-news\/newswire\/good-for-powell-lewrockwell\/","title":{"rendered":"Good for Powell – LewRockwell"},"content":{"rendered":"
\n

Relying on fakery and addictive stimulus is the acme of fragility and vulnerability.<\/i><\/p>\n

Let\u2019s start with a chart of the S&P 500:<\/b><\/p>\n

\"\"<\/a><\/p>\n

Having become addicted to the Federal Reserve\u2019s\u00a0nearly free money for financiers<\/i>\u00a0and the infamous\u00a0Fed Put<\/i><\/b>, stock market players are now weeping and thrashing about in the agony of withdrawal as Fed chair Jay Powell has instituted\u00a0a cold-turkey withdrawal from the financial stimulus of the Bernanke-Yellen days.<\/b><\/p>\n

Let\u2019s be clear: the policies of\u00a0nearly free money for financiers<\/i>\u00a0(QE) and the\u00a0Fed Put<\/i>\u00a0were unmitigated disasters<\/b>, as they distorted financial markets so severely that the markets\u2019 pricing mechanisms have been crippled.<\/p>\n

The policies of the Bernanke-Yellen Fed also directly exacerbated wealth-income inequality<\/b>, as the\u00a0wealth effect<\/i>\u00a0of rising equity valuations\u2013 the supposed goal of monetary stimulus\u2013 only benefited the top 5%, and most of the gains flowed to the top 0.1%.
\n\"\"<\/a><\/span><\/span>
\nMoney and Work Unchained<\/a><\/span><\/span>
\nCharles Hugh Smith<\/span>
\nBest Price: <\/span>$14.48<\/span><\/span>
\nBuy New <\/span>$14.54<\/span><\/span>
\n(as of 11:25 EST – Details<\/span>)<\/span><\/span>
\n<\/a><\/span>
\n<\/span><\/p>\n

Stripped of addictive stimulus and the backstop of the Bernanke-Yellen\u00a0Fed Put<\/i>, the markets are experiencing the pain of withdrawal and the traumatic return of price discovery.<\/b>\u00a0Although we\u2019re taught that capital has financial, intellectual and social forms,\u00a0trust is also a form of capital<\/i>, and thanks to the gross distortions and perverse incentives of the Bernanke-Yellen Fed, nobody trusts the market\u2019s price discovery mechanisms any more.<\/p>\n

This is why market participants are so skittish and so easily panicked:<\/b>\u00a0they have no way of knowing what market valuations will be once the markets get through cold-turkey withdrawal from Fed smack and start discovering price via supply, demand, risk, cost of credit, discounting future cash flows,…<\/p>\n<\/div>\n

Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Relying on fakery and addictive stimulus is the acme of fragility and vulnerability. Let\u2019s start with a chart of the S&P 500: Having become addicted to the Federal Reserve\u2019s\u00a0nearly free money for financiers\u00a0and the infamous\u00a0Fed Put, stock market players are now weeping and thrashing about in the agony of withdrawal as Fed chair Jay Powell […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[519],"tags":[],"class_list":{"0":"post-390622","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-newswire"},"_links":{"self":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/390622","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/comments?post=390622"}],"version-history":[{"count":0,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/390622\/revisions"}],"wp:attachment":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/media?parent=390622"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/categories?post=390622"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/tags?post=390622"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}