Neither the Fed Nor the ECB Can Stop What’s Coming
by Phoenix Capital Research
Today, we are witnessing the investment world’s slow awakening to the fact that the monetary actions taken by the world’s Central Banks have not in fact solved the issues leading up to the 2008 Crisis.
In point of fact, the Central Banks’ actions have exacerbated pre-existing problems (excessive leverage) while simultaneously creating new problems (inflation).
This slow awakening has taken much longer than I would have expected, but with tens of thousands of careers on the line (financial professionals) as well as tens of trillions of dollars in portfolios at risk, the vast majority of professional market participants were highly incentivized not to realize these issues.
However, at this point, it is becoming clear that not only are financial professionals slowly realizing that 2008 was actually “the warm up,” but that Central Banks themselves are aware that they’ve:
1 Failed to solve the issues leading up to 2008.
2 Created other unforeseen problems.