At opening bell right afterward, however, the market continued to crash, and those results perhaps should be telling us that the Fed's one-trick solution to economic crises is just that: a trick.

Please understand that the central bank is doing what it always does when it seems there is an emergency: print money. Now, this is not like what we see in Venezuela, with wads of printed money lying in gutters or even what was seen in Weimar Germany in the fall of 1923. In contrast, the Fed wants us to see Very Serious Central Bankers ensuring that an imploding economy has plenty of "liquidity."

When a proposed congressional bill caused the October 1987 stock market crash, newly appointed Fed chairman Alan Greenspan immediately promised to provide "liquidity" to Wall Street banks. When the Y2K scare loomed, the Fed was there to "provide liquidity."

When the Housing Bubble burst in 2008, something Austrians had predicted more than a year before, Greenspan's successor, Ben "Helicopter" Bernanke, made good on his promise to backstop the entire financial system with "liquidity" as the Fed went on an unprecedented spree of buying near-worthless securities in order to try to prop up the system (see diagram below).