US Federal Reserve

Submitted by Ben Hunt via Salient Partner's Epsilon Theory blog,

Authored by John Coumarianos, originally posted at MarketWatch.com,

One view of what caused the Great Depression in the 1930s is that the Federal Reserve failed to prevent a collapse in the money supply.

This is the famous thesis of Milton Friedman’s and Anna Schwartz’s A Monetary History of the United States, 1867-1960, and it was, more or less, the view of Ben Bernanke when he was chairman of the Federal Reserve.

The global economy today resembles that of the 1930s in several ominous ways.

Submitted by Lance Roberts via RealInvestmentAdvice.com,

That didn’t take much. After a three-day rally, the media is back into “bullish” mode suggesting the bottom is likely in and by the end of this year, it’s all going to be just fine.

https://player.cnbc.com/p/gZWlPC/cnbc_global

Submitted by David Stockman via Contra Corner blog,

That didn’t take long. We’ve just had another short-covering rip from the 1820 Bullard Bottom on the S&P 500 and it’s already petered out. Not even another one of the St. Louis Fed President’s bouncing billiard balls could keep the machines slamming the buy key.

Submitted by Lance Roberts via RealInvestmentAdvice.com,

Biggest Rallies Occur In Bear Markets

As expected, the market was oversold enough going into last Friday to elicit a short-term reflexive bounce. Not surprisingly, it wasn’t long before the “bulls” jumped back in proclaiming the correction was over.

If it were only that simple.