The Fed has entered a new phase after fifteen years of Quantitative Easy (QE), or easy money. The "experiment" says DICK BOVE, chief financial strategist at ODEON CAPITAL GROUP, has gone very badly wrong. In this episode, he presents the quandary for the Fed in this period of rising interest rates with short term rates now rising faster than long rates. "This is the most threatening issue in the financial markets today," he says. In short, BOVE believes the Fed is now facing a unique Savings & Loans (S&L) type crisis. The S&L crisis from 1986 to 1996 was the failure of a large number of US savings and loan associations,  a disaster fuelled  by rising interest rates. "I'm sticking with my prediction," says MAT VAN ALSTYNE, ODEON co-founder and managing partner, speaking generally about the Fed's challenges. "They're going to have to cut interest rates and commence QE before they want to because the economy is going to hit a lot more trouble."

The CONVERSATION opens with an eye on the market's dependence on data rather than on investing concepts. BOVE dismisses this popular approach to tackling the latest course of the market, saying investors should look more closely at the fundamentals and create investment concepts. "It bothers me a lot," says BOVE. "It tells me these people have no idea what they are talking about, " he adds of market professionals who depend on data.  The CONVERSATION also looks at the clearer signs and signals of the much debated recession anticipated by analysts. "It has been a running joke on Wall Street, this calling for a recession, " says host JOHN AIDAN BYRNE, as we examine the signs of a coming recession and BOVE parses the comments of two prominent bank CEOs. 

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