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Fed One Meeting Away from Creating a Doomsday Market Sinkhole

Fed One Meeting Away from Creating a Doomsday Market Sinkhole

Photo CC-BY-2.0 courtesy of the Oregon Department of Transportation

The effective Federal Reserve funds rate (the EFFR) has been sitting at virtually zero for a long time now. It feels a little strange to think about the fact that it was 14 years ago when the central bank first helped to trigger the crash of 2008; and we are still dealing with the consequences of it today. I only started writing for the liberty movement two years before that. The amount of time that it takes for economic disasters to develop is well beyond the average person’s attention span. In fact, there are many people who are adults today that have no clue what happened in 2008 because they were in elementary school when it went down.

This is how the establishment is able to get away with the negative changes to our national standard of living – because these changes usually happen over the course of decades and almost no one notices.

That said, there comes a point in any financial collapse where the floor is as thin as it will ever get. When the next shoe drops it’s going to break right through along with all the furniture. At this stage there is no slow moving crash, everything goes all at once. We have already seen this scenario in action, and again, I don’t think very many people remember the event.

Here’s what most people have forgotten

In 2018 the Fed began hinting at the institution not only of rate hikes but also cuts to asset purchases and its balance sheet simultaneously. It’s important to understand that effective rates had been sitting near zero for almost a decade and cheap overnight loans from the central bank were feeding one of the longest running corporate stock buyback bonanzas in history…

…click on the above link to read the rest of the article…

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