History Lesson and Technical Charts

Let’s hit up the time machine and go back to the Federal Reserve minutes from their August 7th 2007 meeting shall we. What I want to expose is the sheer fact that the Federal Reserve never sees a recession until, well we are well underway. They use lagging indicators and always want to paint a controlled rosy picture, each and every time. So without further adieu, here is the statement:

When the Committee met on August 7, financial markets had been unusually volatile for a few weeks, and credit conditions had become somewhat tighter for some households and businesses. Participants in FOMC meetings (Board members and Reserve Bank presidents) noted that adjustments in the housing sector had the potential to prove deeper and more prolonged than had seemed likely earlier in the year, and a further underperformance in the housing area represented a significant downside risk to the economic outlook. Nonetheless, incoming data indicated that economic growth had strengthened in the second quar…