The unintended consequences of NIRP.
The government’s strange and awesome powers.
Fed clueless how to unscramble omelet, fears “outsized market reaction.” Other central banks keep adding to omelet. Absurdity reigns.
“Social cohesion is at risk.”
The Fed’s “No Banker Left Behind” Program.
Bitter ironies are piling up – with very crummy consequences.
“Here’s when US equity and bond markets will change direction: when investors come to fear the next Fed-talk.”
They’d piled into the new “risk sharing RMBS bonds” issued by Fannie and Freddie. Wall Street provided 80% leverage. Buying frenzy ensued. But it didn’t last long.
Junk bond investors are running for the hills. But there are no hills.
The fundamental and largely invisible shift in Western economies from the markets to central management.