There's no such thing as "Free Money"

In addition to the Fed's predictions and actions, the recent collapse of a major banks has highlighted some of the underlying issues with the current economic system. Some experts argue that the collapse is a product of several factors, including the Fed's monetary policy.

Firstly, the massive $4 trillion in printed money for stimulus has led to concerns about inflation and the stability of the financial system. While the stimulus measures were necessary to support the economy during the pandemic, the long-term effects of this massive injection of cash into the system becoming to surface up.

Secondly, the Fed's decision to keep interest rates at 0% for years has had unintended consequences. While low interest rates can stimulate economic growth, they can also lead to asset bubbles and encourage excessive risk-taking.

Thirdly, the Fed's decision to literally buy bonds and ETFs has been criticized as a form of market manipulation. This move has been seen as distorting the price of assets and creating an artificial market.

Fourthly, the decade-low consumer confidence is a reflection of the economic uncertainty and the lack of faith in the current system. Many people are struggling to make ends meet, and the widening wealth gap has created a sense of disillusionment and frustration.

Finally, the Fed's reliance on a recession to "lower" inflation is a risky strategy that could lead to long-term economic damage. Recessions can have devastating effects on employment, housing, and other key sectors of the economy.

In short, the recent bank collapse is a wake-up call that there is no such thing as free money. The Fed's monetary policy and economic forecasting will need to be re-evaluated in light of the changing economic landscape. The challenge for the central bank will be to balance the need for economic growth with the need for stability and long-term sustainability.