Hard money man Peter Schiff argues we’re in a bubble. The stock market rally is manufactured by the Fed:
We have a completely phoney economy driven 100% by cheap money; the minute you take it away, the whole thing implodes. (emphasis added)
He’s hardly alone, and, superficially, this is an attractive line of reasoning. Indeed, interest rates are at rock bottom, yields are at rock bottom, and the Fed is pumping unprecedented amounts of money into the banking system through its purchases of assets. In one thing Schiff is right — very little of this money is trickling into the real economy.