Nothing received fastened after the 2008 monetary disaster. We’re going to pay a horrible value for the fecklessness of the Fed and our nugatory, captured regulators, enforcers, & coverage makers who turned a blind eye to systemic fraud and large dangers to the soundness of the monetary system.

Too quickly? pic.twitter.com/Yq5yhbiDQb

— Financelot (@FinanceLancelot) December 16, 2022

J Powell –

“We printed an excessive amount of cash, costs went up too shortly and also you could not afford stuff…fear not! We’ll now scale back your web value and take away your job.”

— Puru Saxena (@saxena_puru) December 16, 2022

Extra {dollars} (QE) + low cost credit score = greater costs

Fewer {dollars} (QT) + costly credit score = decrease costs

Till the Fed is finished draining liquidity and mountain climbing charges, asset costs will proceed to deflate. That is nothing new, the identical story has been taking part in out for 100+ years.

— Puru Saxena (@saxena_puru) December 16, 2022

This chart exhibits that the bubble of 2021-2022 was the most important margin bubble in US historical past. It’s collapsing markedly: there is no such thing as a proof of it slowing down

h/t Boo_Randy