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.

This from The Daily Reckoning:

Occasionally I hear the odd guest on CNBC or Bloomberg Radio who lays blame for the crisis in exactly the right place - the Federal Reserve System in the U.S….or central banking more broadly.

These extremely influential institutions ostensibly exist to regulate prices, employment and interest rates by way of control over the money supply. They do this by inflating bank reserve credit, on which the banks can pyramid, thus essentially abrogating the role of interest rate determination by the market.

That is, the central bank

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“Booming markets foster illusions; bear markets pull back the curtain,” says Chris Mayer. Contrarian thinking gives a peak behind the curtain before everyone else. The key is to be unafraid to go against the crowd…

More on contrarian investing from Penny Sleuth:

Contrarian thinking is an important ingredient to investment success.

Running against the crowd often produces investment success…but not always. The essence of a contrarian investment approach is, as author Humphrey Neill memorably put it, “When everyone thinks alike, everyone is likely to be wrong.”

“Everyone” in Wall Street parlance usually means derisively “the crowd” or “the herd.” Market lore is replete with tales of the madness of crowds and the follies of following the herd. Most people like to think they are not part of the multitude, yet by definition, most people are.

Today, as we gaze back at a market peak that looks more magnificent with the passage

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“The next Fourth Turning is due to begin shortly after the new millennium, midway through the Oh-Oh decade. Around the year 2005, a sudden spark will catalyze a Crisis mood. Remnants of the old social order will disintegrate. Political and economic trust will implode. Real hardship will beset the land, with severe distress that could involve questions of class, race, nation, and empire.”

– William Strauss and Neil Howe, The Fourth Turning, 1997

When IndyMac …

VANCOUVER, B.C. - The U.S. financial crisis has cut so deep - and the government has taken on so much debt in misguided attempts to bail out such companies as Fannie Mae and Freddie Mac - that even larger financial shocks are still to come, global investing guru Jim Rogers said in an exclusive interview with Money Morning. Indeed, the U.S. financial debacle is now so ingrained - and a so-called "Super Crash" so likely - that most Americans alive today won’t be around by the time the last of this credit-market mess is finally cleared away - if it ever is, Rogers said. The end of this crisis "is a long way away," Rogers said. "In fact, it may not be in our lifetimes." During a 40-minute interview during a wealth-management conference in this West Coast Canadian city last month, Rogers also said:...

Alex’s Notes: Dont know about you, but I consider Jim Rogers to be a very smart man. You dont become a Billionaire in commodities by being stupid. He has some very interesting things to say about the Federal Reserve Chairman Ben Bernanke in a recent interview.

In my opinion, this guy gets inflation and the big picture better than just about anyone.

8.19.2008 Latest Jim Rogers Interview,

During a 40-minute interview during a wealth-management conference in this West Coast Canadian city last month, Rogers said that:

• U.S. Federal Reserve Chairman Ben S. Bernanke should “resign” for the bailout deals he’s handed out as he’s tried to battle this credit crisis. • That the U.S. national debt – the roughly $5 trillion held by the public– essentially doubled in the course of a single weekend because of the Fed-led credit crisis bailout deals. • That U.S. consumers and investors can expect much-higher interest rates

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The First of Two Parts.] Keith Fitz-Gerald Investment Director Money Morning/The Money Map Report VANCOUVER, B.C. – The U.S. financial crisis has cut so deep – and the government has taken on so much debt in misguided attempts to bail out such companies as Fannie Mae (FNM) and Freddie Mac (FRE) – that even larger financial shocks are still to come, global investing guru Jim Rogers said in an exclusive interview with Money Morning. Indeed, the U.S. financial debacle is now so ingrained – and a so-called “Super Crash” so likely – that most Americans alive today won’t be around by the time the last of this credit-market mess is finally cleared away – if it ever is, Rogers said. The end of this crisis “is a long way away,” Rogers said. “In fact, it may not be in our lifetimes.” During a ...