by David Haggith, The Great Recession Blog:

Today the market paid back some of its delusional holdings. It has a lot more left to pay back. You see, the market believed the Fed all of last year when the Fed said inflation was transitory. Or, at least, market leaders sold the Fed’s narrative, accelerating us into a heck of wreck.

It’s not clear whether the market leaders actually believed that narrative or even if the Fed did. Maybe the Fed just hoped it would be true. What is clear is that the Fed, which also sold everyone on the belief that it is data dependent, had almost no data all of last year upon which to base its “transitory” narrative and all kinds of data that said it wasn’t even close to being transitory. This I know for a data-based fact because I kept pumping that data along as I came across it myself; and, if I could see it in such overwhelming abundance, so could they. Or, at least, so should they.