Central Banks Double Down on the Mistakes of 2008… Creating the Greatest Bubble in Financial History
by Phoenix Capital
ZeroHedge.com
Aug 28, 2016
The common consensus in the financial community today is that the Fed and other Central Banks have somehow managed to end the business cycle. The result of this is that we’ve entered a period of sustained growth (albeit low growth) that will continue in perpetuity until something magical happens and stronger growth returns.
On the surface, this argument is embarrassingly naive. And it is astounding that grown adults actually believe it.
The Fed and other global Central Banks are largely being run by academics with zero real world experience. For centuries leaders and their advisors have tried to generate perpetual growth. None have succeeded. So the idea that this current group of Central Bankers, isolated from the private sector for their entire careers, somehow understand economics better than any other group of humans in history is a ludicrous.
We don’t even have to look back far to see where this ends. A mere 15 years ago, the financial world believed that Alan Greenspan was an economic genius who had brought the world to an era of the New Economy in which we saw non-stop productivity gains.
Today we laugh at the ignorance of this. Not content to have created the since largest stock bubble in financial history, Greenspan doubled down on his foolishness by creating a housing bubble that was three standard deviations away from historic norms.
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