- As expected, the Fed Wednesday announced details of its taper strategy, which is essentially starting with a $15 billion reduction.
- The Fed’s failure to tighten policy and rein in mortgage-related excess was a monumental Policy Mistake – one that led directly to the post-Bubble introduction of QE.
- Federal Reserve Credit last week declined $7.6bn to $8.531 TN. Over the past 112 weeks, Fed Credit expanded $4.804 TN, or 129%. Fed Credit inflated $5.720 Trillion, or 203%, over the past 469 weeks.
For further details see:
Weekly Commentary: Dow 36,000 And Policy Mistakes