Public Availability: Initially released to Subscribers 06/24/14
July Monthly Market Commentary
The Fed Can't Create Wealth & Only Temporary Collateral
I spent a lot of time in 2012 and 2013 talking about Monetary Malpractice
and where it would lead. I discussed extensively the consequences of Moral
Hazard and Unintended Consequences and how they could lead to Dysfunctional
Financial Markets.
I additionally showed how Misinformation & Manipulation of CPI Inflation
measures, GDP deflators and Labor Statistics was Monetary Malpractice and
how it would lead to Malfeasance, Mispricing and Malinvestment as the Price
discovery process was corrupted. The Mispricing of Risk would be a logical
consequence.
Liquidity
is Neither Wealth nor Collatoral
