The Fed Is Insolvent… Do You Still Think the Crisis is Over?

08/22/13

The single dominant belief for investors since 2008 has been that the world’s Central banks will not permit the markets to fall to pieces.There are primary two primary reasons for this:

1)   The Fed and other Central Banks managed to hold the system together in 2008-2009.

2)   Central Banks have stepped in time and again to prop up the markets every time they staged a significant correction since 2008.

The most obvious culprit here is the Fed, which has stepped in following every market correction in the last four year, either with the promise of a new round of QE or outright announcement of a new round of QE.

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