Markets Are Expecting the Federal Reserve to Save Them – It’s Not Going to Happen
Markets Are Expecting the Federal Reserve to Save Them – It’s Not Going to Happen October 5, 2022 From Brandon Smith I have said it many times in the past but I’ll say it here again: Stock markets are a trailing indicator of economic health, not a leading indicator. Rising stock prices are not a signal of future economic stability. When stocks fall, it’s usually after years of declines in other sectors of the financial system. Collapsing stocks are not the “cause” of an economic crisis, they are just the delayed symptom of a crisis that was already there. Anyone who started investing after the crash of 2008 probably has no understanding of how markets are supposed to behave, and what they represent to the rest of the economy. They’ve never seen markets operating without interference and stock prices moving freely. Central bank meddling, which started as a “last ditch effort” to save the global financial system at any price has now become business-as-usual. Worldwide, stock