Why The Fallacy Of The Fed’s Feedback Loops Has Failed – “The Bust Is Still Underway”
by Tyler Durden
ZeroHedge.com
10/31/2015
Should the Fed actually hike in December (the statement explicitly mentioned the possibility), we think it’s highly likely to become a “one and done” that will be taken back shortly, similar to the BoJ’s handful of attempts to hike rates after the bursting of the 1980s bubble. We say this simply based on the economy’s actual performance. After all, it took only a minimal tightening of policy (the “tapering” of QE3) to induce a bust in the sector most exposed to capital malinvestment.
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