Money printing by the Federal Reserve will continue into the near future. And while it will help America avert a recession, the flow of easy money will be disastrous over the longer term.
The reality is that the current bull market and rebound in the housing sector that has made some people very rich is a by-product of the Federal Reserve, as the central bank has built this artificial economy in America that’s driven by the availability of cheap money. Recall the subprime mortgage crisis in 2008 was also driven largely by cheap money.
The problem is that the Federal Reserve had some tough decisions to make. Either let the country revert back to a possible recession or offer loose monetary policy to drive spending. Of course, the Federal Reserve only really had one choice.
While I agree with the Federal Reserve, with the economy now in recovery, you kind…
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