Is the Fed Is Creating The Mother of All Bubbles?

This is the opinion of David Stockman, director of the Office of Management and Budget (OMB) under President Reagan, and veteran investor and financial author Jim Rogers:

Americans should be bracing for the explosion of a “mother of all bubbles” brought about by the Federal Reserve’s gross and irresponsible manipulation of interest rates, according to David Stockman, the colorful supply-side economist and director of the Office of Management and Budget under President Reagan.

The central bank has created a false prosperity that shows up in an overpriced stock market, Stockman told Fox Business Network.

The Fed’s massive stimulus since 2008 is “the greatest gift to the 1 percent, to the speculators, to the leveraged traders, to the carry trade ever imagined,” he said.

“Now we have the greatest mother of all bubbles. And there’s nobody left in the stock market today except drugged-up day traders and robots who are being mainlined by the daily injections of liquidity from the Fed. This is utterly irrational.”

The United States is at the mercy of the same crew of central bankers who brought the nation the dot-com crash and the housing bubble, according to Stockman—not exactly a track record of success. And, he added, long-time Fed banker Janet Yellen has been nominated to be the next Fed chair.

[...]

Veteran investor and financial author Jim Rogers, himself no stranger to hyperbole, told Reuters TV that the Fed is only one of numerous central banks around the world that are all printing money in pursuit of economic growth.

“The world is floating around on a huge artificial sea of liquidity,” Rogers declared. “It’s going to dry up and when it dries up we’re all going to pay the price for this madness.”

(my emphasis in bold)

Read the full article: David Stockman: Fed Is Creating the 'Mother of All Bubbles'

AMEN!

When the bubbles burst this time, 2008 may seem like child’s play; and the number of Americans in poverty will climb dramatically, as it did during the Great Depression of the last century. See “49.7 Million Americans Living In Poverty.”

Hold on tight. Things will get very ugly and scary between now and the end of this decade!