Bernanke Just Admitted He’s Lost Control of the Markets
by Phoenix Capital Research
For weeks now I’ve been warning that absent the hint of additional liquidity at the June FOMC meeting, the markets would tank.
And tank they have… almost to the minute that the Fed FOMC ended.
The number of problems facing the financial markets today is absolutely enormous. China has begun an interbank liquidity Crisis. Europe’s banking system continues to collapse. Heck even Trichet now admits that risk is on “red” for the Eurozone (remember how everything was “fine” for the last year?).
The Middle East continues to go up in flames… literally. Greece is seeing full-scale riots (coming to a country near you in the next 12 months). Inflation is erupting in China. And on and on.
And at the head of all of this, the US Federal Reserve, run by Time’s “Man of the Year” Ben Bernanke, admitted openly they don’t have a CLUE why the economy is not picking up.
Folks, this is the same guy who was MONTHS BEHIND on calling the US recession, the Financial Crisis of 2008, and every other problem facing the US. So if he’s admitting he doesn’t know what’s going on now… after spending TRILLIONS of Dollars… then you better BELIEVE things are going to be getting ugly.
I’ve long said that the next Crisis will make 2008 look like a picnic. The reason is quite simple: the next Crisis will be a Crisis of Faith pertaining to the US Federal Reserve.
For 80+ years, the US financial system has operated under the belief that the Federal Reserve could handle any problem. This belief was put to the ultimate test in 2008 when the Fed faced off against the biggest Financial Crisis of the last 80 years. And the ONLY thing that kept us from the brink was the belief the Fed could fix things.
It couldn’t. And we’re all beginning to see that now.