Stocks Dive

Stocks have had their worst week since the summer of 2011. In 2011  the Fed came to the rescue with another injection of monetary stimulus to prop-up the markets. Stocks dutifully took off to new heights. Now the Fed has indicated that liftoff is around the corner. Thus far, further stimulus appears to be off the table. But we will see. I wouldn’t be surprised to see the Fed back away from tightening. I wouldn’t be surprised to see the Fed inject trillions more into the stock market asset bubble that they’ve come to covet as their special legacy. The proof will be in the pudding as a correction is long overdue. For the past 6-years, the only consistent Fed action has been to prove that Keynesian Economics is sacrosanct. Why should this time be any different?