From crisis to crisis, and even when there’s no crisis.
Someone had to buy every dollar of this monstrous debt. Here’s Who. The Fed isn’t the only one. But China continues to unwind its holdings.
Bond Market Smells a Rat: Inflation. So the Fed seems OK with rising long-term Treasury yields.
“There is no justification” for continuing the purchases of mortgage-backed securities. The Fed is “misdiagnosing its impact on the housing market.” Pressure rises on the Fed to back off, in face of market craziness.
And five SPVs expired, including the one that bought corporate bonds and bond ETFs.
Other options also shaky. Central banks leery of Chinese RMB, its share still irrelevant. Euro’s share is stuck. But the yen’s share has been rising.
During the Financial Crisis, consumers deleveraged by walking away from their debts. And now, with 20 million people still claiming unemployment insurance?
Consumers cut back on applying for credit cards, and the Fed is not amused.
No Wonder the Cry Babies on Wall Street are clamoring for more. Five SPVs, already on ice, will expire on December 31.