The Chicken or The Egg?

The stock market is just like the FED. As this blog has warned, the financial owned financial media being mouthpiece of the Wall Street elite persuade retail investors into a stock or sector just before the institutions intend to exit it and they try to scare you out of a position just before they want to come in. This is an old and painfully successful MO. Now we see the FED has been doing it too. I wonder which is the chicken and which the egg. From Mish

The reason banks (and government) want inflation targets is that inflation is beneficial to those with first access to money: banks, government, and the wealthy. By the time access to credit filters down to everyone, the economy is poised to reverse. This happens time and time again in every cycle. The current housing bust is the latest example.

And

Attitudes are like pendulums. Momentum carries both pendulums and attitudes to extremes. The pendulum of consumer recklessness has now reversed, having recently reached a secular peak. It will not stop at equilibrium on the way down. Instead, momentum will progress to a point of complete exhaustion marked by cautious saving instead of reckless spending.

Well this always ends with some one getting screwed and this time I mean hard. Need I say who?