The Fed who has brought us one crises after another since the 2000 Dot.BOMB melt down, has done it again. Merging the FED into the US TREASURY is so long over due for congress. What an antique and failed agency.

Chairman Greenspan was a leader. He understood OLIVE BRANCHES to calm markets. Or derail bubbles as he attempted to do but lacks ammo the Treasury has alone. The Fed is dead.

Today Fed planners failed to provide an olive branch. The markets sunk 200 points. So much wealth wiped clean because of another missed opportunity. If they had indicated that watching FACE BOOK Double its earnings – they see such foundational strength from China to the EU globally and developing nations are set for a huge rebound – they would have becalmed the waters. The commission – the absence of GUIDANCE leaves the APPEARANCE FACTOR.

The appearance the FED DEAD. The Fed lacks tools and tactics to stabilize. The Fed is powerless. Worse the Fed is in disarray. The Fed is eating itself. The Fed is in panic mode. The Fed has nothing left. This APPEARANCE has market planners moving to: I’m taking my profits now and waiting this out. This is becoming a global sensation lacking any leadership from national officials or Fed’s globally.

China has been worse. Their lack of guidance has left the APPEARANCE they are lying about their numbers – real GNP is around 3% and falling into a depression hard landing deflation like the Asian Crises of the 1980’s. That crises is still not resolved decades into now.

As we have reported the crises today is the CRISES OF LEADERSHIP. No one will get out front of the panic rising. This self feeds – panic self feeds in a digital click world. Leverage – ungodly debt – is unwinding. Debt to buy market holdings now must be paid as MARGIN CALLS on the debt from collapsing markets spirals – into sell off’s that are required to repay debt calls and the spiral is unstoppable. Delivering is unstoppable.

Experts suggested for years the Fed global policy of FREE MONEY would have the unintended consequence of channeling trillions into non economic growth via wild speculation. The speculation is now loosing trillions and this spiral is advancing under its own deflation weight. The worst fear of all Fed planners – DEFLATION ECONOMICS. The seed cause of all depressions globally followed by world war.

We believe despite the failed FED policy – that – the market will self correct. The market has over shot. The core economics globally are better than the market is ceding credit for. As the profit takers become bargain buyers the upside in this market is enormous. We have predicted impossible swings as market STABILITY is now GONE. We see wild crazy cycles all year.

Don’t get swept into SUCKER RALLYS as your computer powers are not sufficient to out trade the pro computer software making profits all the way up and making profits all the way down. Cycles make profits for the inside teams. The market is a mess. Stability will not return until new leadership and elections are OVER in our opinion.

What do you think?

Comment here for us all.

Berny Dohrmann

Feedback appreciated on your views Todays crash was avoidable – what a shame and missed opportunity by Fed Policy markers MERGE THE FED Into US TREASURY and re-invent the stability.