One of Wall Street’s biggest bears has delivered a scathing review of the Federal Reserve’s monetary policy — accusing central bankers of creating the “greatest credit bubble in human history.”
Mark Spitznagel, chief investment officer of Universa Investments, believes the Fed has created a “tinderbox time bomb” that will explode into a mega inferno — in the shape of a major market crash — in the next few years.
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In a recent interview with New York Magazine’s Intelligencer he went in hard on the Fed and global central banks in general for how they’ve rebuilt since the Great Recession.
“Credit bubbles end. They pop. There’s no way to stop them from popping,” he said, adding that the Fed has brought the economy to a place “where there’s no turning back.”
An inferno waiting for a spark
Spitznagel likened the Fed’s “constant monetary intervention” to forest fire suppression.
“Wildfires are an important, healthy part of the natural turnover in a forest ecosystem. They are essential,” he said. “And forest rangers suppress them, thinking that a wildfire is bad. Well, when you suppress it enough, it gets to a point where you can no longer afford to have any fires burn because they would be too big and too intense.”
And that reflects the current…
