by David Stockman
International Man: Recently, massive riots have broken out in many cities across the US.
Despite the unrest—and the economic damage from the shutdowns—the stock market continues to rally.
It seems that markets don’t reflect earnings, economic prosperity, or growth. What is going on here?
David Stockman: It’s quite simple. The Fed has unleashed the greatest torrent of liquidity ever, and it’s finding its way into a relentless, massive bid for risk assets.
Since the eve of the Lockdown Nation disaster on March 11, the Fed’s balance sheet has erupted from $4.3 trillion to nearly $7.2 trillion. That’s $32 billion per day—including weekends, Easter, and nationwide riot days.