Hussman Weekly Market Comment: Leash the Dogma

It’s fascinating to hear central bankers talk about the economy, because in the span of a few seconds they can say so many things that simply aren’t supported by the evidence. For anyone planning to watch the confirmation hearings for the next Fed Chair, the evidence below is provided as something of a leash to restrain the attacking dogma.

There’s a lot of ground to cover this week – the Phillips Curve, quantitative easing, the Fed's bloated balance sheet, the “wealth effect,” the misguided "dual mandate," and the largely unrecognized bubble in stock prices. We have a Federal Reserve relentlessly pursuing a “trickle down” monetary policy that has weak economic effects, thin historical support, and ominous implications for future investment outcomes and the stability of the financial markets. So let’s get started.