Lee Adler expounds on why the Fed doesn’t have market risk, but why it was the causa proxima of not only the 2008 stock market crash, but the economic panic that accompanied it. Given the Fed’s record of careening from blunder to blunder under Greenspanput and The Bernank, he expects the Fed to blunder again in 2011 and cause another market collapse. Russ Winter keeps buying cheap puts, anticipating a jail break and a 10-20 bagger. The question is when. Lee looks at the Fed, Treasury, and cycle analysis and posits a time frame. Subscribers, click the player at the bottom of this post (visible on Radio Free Wall Street main site only) to listen to podcast, or use this link to download.
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Source- Meulendyke- US Monetary Policy and Financial Markets, Federal Reserve Bank of NY, 1998