The finger of blame for this crisis should be pointed at the Fed, says Ed Bugos. Its interventionist activities created an unsustainable bubble. A recession is just the process of correcting these mistakes. Worse still, Ed says the Fed’s current actions are proof that it is not about to change this approach. Expect more inflation, and a bull run in gold.

The Fed could use “proposed new regulatory powers to try to stop credit and asset market excesses from reaching the point where they threaten economic stability,” reports the Financial Times.

According to the paper: “David Nason, assistant secretary for financial institutions, said the Fed could even use its proposed ‘macro-prudential’ authority to order banks, hedge funds and other entities to curtail strategies that put financial stability at risk.”