Health & Fitness
Every Asset That Depends on Cheap, Abundant Credit (Housing, Bonds, Stocks) Is Doomed
Here is another insightful commentary from Charles Hugh Smith about what is likely to happen should interest rates continue to climb further, after having risen sharply recently, as a direct result of Chairman Ben Bernanke’s comments about tapering the Fed’s quantitative easing programs. My current thinking is that Charles’ comments are very accurate, but I don’t believe that the Fed can actually reduce its QE programs anytime in the near future as the world has become dependent on the Fed’s stimulative efforts. That’s not to say that Bernanke shouldn’t implement ‘tapering’, but remember that the Fed’s programs are also currently allowing the U.S. government to fund its huge deficit spending by their purchasing large amounts of this newly created debt.
