Fed Risks Lehman Crisis As US Recession Storm Gathers

by Mark O’Byrne
GoldCore

The Telegraph’s Ambrose Evans Pritchard reports that “the risk of a US recession next year is rising fast” and that “the Federal Reserve has no margin for error”.

[…] AEP is quite well connected and very well informed on such matters and hence the need to consider what he is saying and more importantly prepare:

“Liquidity is suddenly drying up. Early warning indicators from US ‘flow of funds’ data point to an incipent squeeze, the long-feared capitulation after five successive quarters of declining corporate profits.

Yet the Fed is methodically draining money through ‘reverse repos’ regardless. It has set the course for a rise in interest rates in December and seems to be on automatic pilot.”

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