Over the last couple of years, we have often discussed the impact of the Federal Reserve's ongoing liquidity injections, which was causing distortions in financial markets, mal-investment, and the expansion of the "wealth gap."
Our concerns were readily dismissed as bearish as asset prices were rising. The excuse:
"Don't fight the Fed"
However, after years of zero interest rates, never-ending support of accommodative monetary policy, and a lack of regulatory oversight, the consequences of excess have come home to roost.
This is not an "I Told You So," but rather the realization of the