The mainstream financial media is like a stopped clock. Every once in a while, it stumbles into being right.

Last week, we had a veteran trader on CNBC Futures Now
 telling everybody to buy gold as long as central banks continue their expansionary monetary policy, all the while swearing he isn’t a “gold-bug.”

This week, we have analysis appearing on Yahoo Finance showing that the Federal Reserve has created a stock market bubble.

Of course, Peter Schiff has been saying this for months. In an interview on CNBC World Now last January, Peter explained how Fed monetary policy inflated a stock market bubble and engineered a fake wealth effect. He went on to argue that the December rate hike, small though it was, pricked the balloon, causing the volatility we continue to see today:

I think the volatility in the markets has been created by the Fed. The Federal Reserve is the reason the market is so high in the first place. They inflated it. They did it deliberately to engineer a wealth effect. It’s phony wealth, unfortunately. When you create phony wealth with a stock market bubble, the result is substantial malinvestment. You encourage all sorts of uneconomic activity to take place. You get rampant speculation. Of course, when the artificial high wears off – and that’s what’s happening now, particularly now that the Fed has raised interest rates and is posturing as if it’s going to raise them some more – the air is coming out of this bubble. And that is where the volatility is coming from.”  

Over the weekend, Yahoo Finance reported on analysis that proves Peter’s contention, showing that 93% of the entire stock market move since 2008 was caused by Federal Reserve policy:

The bull market just celebrated its seventh anniversary. But the gains in recent years – as well as its recent sputter – may be explained by just one thing: monetary policy…The S&P 500 doubled in value from November 2008 to October 2014, coinciding with the Federal Reserve Bank’s ‘quantitative easing’ asset purchasing program. After three rounds of ‘QE,’ where the Fed poured billions of dollars into the bond market monthly, the Fed’s balance sheet went from $2.1 trillion to $4.5 trillion.”