Free Republic

Despite recent hedge fund disasters and almost every economic indicator pointing to a potential stock crash, Biden’s administration has completely ignored a potential equities bubble.Since March 2020, $5.9 trillion in so-called relief spending authorized by Congress, as well as $3.3 trillion in quantitative easing from the Federal Reserve, has been pumped into the U.S. economy. America’s pandemic response resulted in 22 million jobs lost in a matter of months, and we still have 10 million fewer jobs than before March of last year. The fiscal and economic repercussions of going from stronger than expected job and wage growth in January...

Julian Robertson, the legendary hedge fund manager behind Tiger Management, thinks central banks are fueling bubbles throughout financial markets. "We don't have negative rates here in the States yet, but I think it's tragic that we've taken rates down this far," Robertson said this week at Bloomberg's Surveillance Primetime event. "I know the Federal Reserves all over the world are trying to ensure prosperity, but in doing so I think they are ensuring a huge bubble, which will be pricked, and we will all be hurt by it." Negative and near-zero interest rates from central banks have allowed increased borrowing......

The Downfall of America’s Economy by: Ben Giles, June 11, 2008 If Jörg Guido Hülsmann wrote a letter to U.S. Federal Reserve chairman Ben Bernanke, it might sound something like this: “Your entire monetary policy is going to crash and burn in the next 30 years.” In an article titled “What Causes Moral Hazard,” Hülsmann argues that the American economy is creating a financial bubble that could soon burst. It’s all thanks to moral hazard, the prospect of poor financial decisions being made in the economy due to negative incentives. “Moral hazard entails market failure,” Hülsmann wrote. “It brings about...