Fed Warns of Significant Hit to Asset Prices If Crisis Grows

Another not-so-subtle clue in the news … Fed chair Powell warns that commerical real estate values could plummet because of crisis … if “financial system strain’s re-emerge”. Notice Powell makes a distinction between the economy and the financial system. Health crisis > Economic Crisis > Financial System Crisis (credit markets and banks).

The economy needs to generate revenue to make payments on the ginormous debts. If debts go bad, asset values collapse taking bonds and banks with them. Our guess is the Fed will print as many dollars as it takes in an attempt to stop it. Is the dollar strong enough to do it? What if it’s not? Get ready … to continue reading, click here >>

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