Before we get into the timing of the recession, here is a graph that is particularly telling of the Fed’s journey and is worth studying from left to right. Notice how chaotic and less effective our journey with FedMed has become, just as I wrote about in another article this week (“Zero Hedge Confirms Fed is Dead“).
I want you to particularly note how the effectiveness of FedMed petered out after the recession took down the stock market. (The top line is total Fed assets; the bottom is the S&P 500.) The market is refusing to attain its previous climax because the now impotent Fed just can’t get it up again. (Just sayin’. That description fits it best.)
There is an alternative way to view the tail-end of the Fed’s demise, but I’m not sure it looks any better for the Fed. Here’s a close-up of that end time on the graph: