by John Rubino
The following was posted a couple of weeks ago. But with the markets tanking today, the message is still timely.
For the past few years, the US financial system and the Fed have been playing a game of chicken in which the Fed tries to tighten (or at least stop easing) and the stock market behaves like an addict deprived of its heroin.
In 2018, for instance, the Fed started raising interest rates and shrinking its balance sheet, though in both cases only a little. The S&P 500 did this: