At its roots, QE is a mechanism of wealth redistribution. Zero rates transfer wealth from savers to borrowers and speculators.
Moreover, there are myriad costs associated with central banks nullifying the business cycle.
Thinking their economy was sufficiently robust to overcome a non-economic factor, the tax hike, they instead were forced into making excuses throughout Q4 2019 as to why it instead seemed to collapse so easily.
This isn’t 1930-33 levels but it is beginning to look like the same kind of thing, a serious fracture in the economic system which extends beyond the first order effect of the COVID-19 shutdowns.
The Fed just posted how much help it will give the market next week and son of a gun! It’s cutting again. The implications of this are yooge! Apparently Jaysus saves not! At least not the stock market. Doesn’t he care? Is this ritual sacrifice?
Here’s what you need to do now to protect yourself from Jaysus Powell’s Revenge.
Updating my data charts for EU27 comparatives to the U.S. in the number of cases, deaths and death rates:
The market action of the past 36 hours suggests that the money is gone.
Here’s a look at how the stock market sets up and what you should look for and expect today.
The futures continue the pullback that began a day after Jaysus Powell promised that the Fed would do whatever it takes to keep the US economy afloat, including slaughtering grandparents.
Monetary policy can be implemented through outright purchases or sales of securities, which permanently changes the size of the Federal Reserve’s System Open Market Account (SOMA) portfolio.
Fed QE $2.500B TIPS Purchase
Following along the same top-down model, what unites central bankers and socialists is equality. Handing over significant authority to either results in everyone being equally impoverished. And, therefore, those very authorities fighting over minute scraps so as to display some sense of accomplishment.In October 2015, safely nested within the cozy confines of Brookings, being paid […]