What most people fail to realize is the Federal Reserve has been successful in creating yet another massive bubble in not just the stock market, but also in real estate-A bubble which the general public is not prepared for.
After the stock market/credit bubble/housing meltdown of 2008, the Federal Reserve began "extraordinary monetary policy," they artificially suppressed interest rates, which would open the door to re-inflating the current stock market bubble and a new housing bubble.
The actions of The Federal Reserve, if you recall, was purchase what was known at the time as "toxic assets" from the Wall Street banks, essentially freeing them from any financial wrong, they were known as "too big to fail."
By the Federal Reserve buying these toxic assets, also known as mortgage-backed security's from the banks, the Federal Reserve hyper-inflated their balance sheet, their debt load, to greater than the GDP of most countries.
The Federal Reserve bought these "toxic assets" from the Wall Street banks who were pushing the public into the street, people became homeless. Now we find out that the Federal Reserve is talking about reducing the size of their balance sheet now that they have created a market for these new "nontoxic assets," which were once known as toxic assets, or mortgage backed securities. How? By deliberately re-inflating a housing bubble...
Does anyone here reading this article find it somewhat suspicious that the Federal Reserve is now talking about dumping their balance sheet right at this particular moment in time?
Is the Federal Reserve signaling a top to the current housing market?
Why dump the mortgage backed securities now?
Are we about to witness the bursting of this new deliberately Federal Reserve inflated housing bubble?
What do you think?
Gregory Mannarino