Tag Archives: money multiplier

Since last October the stock market has been on a run. The Federal Reserve is now taking credit for it and indicating that it was a policy intention of the monetary leap forward known as Quantitative Ease. By the Fed’s own admission they are promoting financial leverage and don’t know the extent to which they are creating an asset bubble, a responsibility they now have the obligation to monitor and control. So far so good, but beware of a Black Swan Event leading to asset deleveraging. Continue reading →