The Federal Reserve has now admitted that five years ago, just days before the start of the financial meltdown, Mr. Bernanke and others at the Fed did not have a clue as to the impending financial disaster.
Contrast that with the results of an astonishing poll by a Chartered Financial Analyst Institute publication that says 59% of investors now believe that because of what’s happened during the last five years central banks and governments will be there to bail out troubled creditors.
In other words, because of what’s happened in the last five year, 59% of investors now believe that the Federal Reserve will save their butts in terms of their investments if anything goes wrong.
Add to that insanity the fact that Investor’s Intelligence has reported that the percentage of bearish newsletter writers is now near its lowest point since it was started 50 years ago in 1963. Which means that most everyone now believes in the market’s version of the tooth fairy—that the Federal Reserve is omnipotent.
Remember, five years ago the premise behind all the money printing was that it would be a temporary bridge to get over the difficulties created by banks owning more bad paper then their total capital worth. So instead of allowing the big banks to go broke, they were bailed out.
Read More at Forbes . By Charles Biderman.