Tim Duy — This Expansion Will End in a Fizzle, Not a Bang

The Fed is growing increasingly concerned that this expansion will end like the last two, with a collapse in asset prices that brings down the economy. That concern will lead the central bank down the path of excessive tightening. Worse, that logic misses a key point. In both of the last two cycles, there was a sizable imbalance in the economy that extended beyond financial assets themselves. So far, the current environment lacks such an imbalance. That suggests the expansion ends with more of a fizzle than a bang....

The central point is this: High asset prices alone do not imply that a fall in those prices will bring the economy down. Those asset prices need to be linked in a very tangible way to a fairly significant and widespread imbalance in the economy for their decline to bring about a broader economy collapse....

Bloomberg View — Opinion
This Expansion Will End in a Fizzle, Not a Bang

Tim Duy | Director of Undergraduate Studies of the Department of Economics at the University of Oregon, the Director of the Oregon Economic Forum, and blogger at Tim Duy's Fed Watch

John P. Hussman — Low and Expanding Risk Premiums are the Root of Abrupt Market Losses

Another bubble brewing.

Hussman Funds

Low and Expanding Risk Premiums are the Root of Abrupt Market Losses
John P. Hussman, Ph.D.

Jeff Cox Here's the Real Reason the Fed Will Taper QE: Pro

Noted Nomura bear Bob Janjuah believes he knows the reason why the Federal Reserve will begin pulling back its easing program, and it's not about unemployment, inflation or anything else directly related to the economy.

Instead, he believes the central bank is worried that it is creating an asset bubble that will only get worse if it keeps following the current path.

CNBC NetNet

Here's the Real Reason the Fed Will Taper QE: Pro

Jeff Cox | Senior Writer