They undermine banks. To dodge the fallout, banks chase yield, buying stuff like CLOs, instead of lending. When loans go bad, banks may “evergreen” them.
If the US dollar loses its hegemony as a global reserve currency, it would be a sea change globally, and specifically for the US economy. Today, we got the next installment in that saga.
Draghi’s desperate shenanigans thicken.
A rout in the hyper-inflated bond market can blow up everything at this point.
How to make a mess in the era of low demand.
Interest rates don’t have to be negative to make a mess in the era of “Secular Stagnation.”
Now they’re clamoring for this NIRP absurdity in the US. How will this end?
Now they’re clamoring for the NIRP absurdity in the US. How will this end?
12 countries with negative 10-year yields. A race to hell.
Bitter irony: As Draghi’s term is about to end, investor expectations plunge to where they’d been when he made his “whatever it takes” speech in 2012.