Federal Reserve Looking Towards Wall Street For Next Financial Crisis Warning

Federal Reserve has been accused of building up bubbles in US economy.

The last time this happened was in 2008.

A bubble was building up in the real estate sector that required increasing interest rates to bust it.

Increasing interest rates was not a popular decision.

So the Fed Chairman Alan Greenspan ignored it.

Ultimately this bubble crashed the real estate market when it burst.

Along with it the housing and the mortgage market crashed.

This led to the banks failing at Wall Street.

Bear Sterns crash was the trigger that initialed the crash of stock market in 2008.

Read this post in which I analyze how FED is looking towards Wall Street for the next financial crisis warning.