We're A Long Way From Kansas Now

A look back at 2022, and a preview of what may lie ahead in 2023.

The largest combined monetary and fiscal stimulus experiment in US history is ending in the only possible way it could. 

I began writing about the “Covid Bubble” over 13 months ago in “We’re Not in Kansas Anymore”.  The general gist of my report was that crisis monetary policy from the Federal Reserve (in response to the Covid-19 Pandemic) fueled one of the largest asset bubbles in the history of financial markets.  It is difficult to quantify just how big the Covid Bubble truly was, but I took a stab at that in “The Pendulum Swings Both Ways”.  In that report, I wrote: