It must raise a few eyebrows at the Fed when an institution as mainstream as Yahoo Finance is describing, in the absolute simplest terms possible, that 93% of the S&P 500 bull market going back to 2008 can be tied directly to increases in the Fed’s balance sheet.

Now consider that the Fed is trying to unwind the very policies that directly resulted in 93% of equity appreciation since 2008 simultaneously with a weakening global economy, deteriorating labor participation (here), falling U.S. industrial production (here), falling home prices (here), and falling commodity prices.

The Fed’s policies were intended to artificially raise asset prices and they succeeded. The Fed called this bubble the ‘wealth effect’. Why the wealth created by their ‘Fed Bubble’ would be any more lasting, equitable, or constructive than the wealth created by any other bubble is beyond reasonable explanation.

As the Fed now tries to exit the business of perpetually inflating assets, they will be doing nothing more than deflating their own bubble.