The economy would muddle through, but in the markets, all heck would break loose. Here’s why.
The dream of a return to QE was fun while it lasted.
But the Chinese Renminbi didn’t make any progress at all last year.
The Fed’s rate hikes and QT didn’t break anything except consensual hallucination.
The Fed is structurally too conflicted to regulate banks. The FDIC is not, but it needs tiger teeth to bite CEOs’ heads off.
Was it the Swiss National Bank that Borrowed $60 Billion via “Foreign Official” Repos for the Credit Suisse takeunder?
An enormously important new regime gets engraved into central-bank handbooks. The ECB and Bank of England are also on board.
Stepping on the brake with one foot while putting an arm around the baby to keep her from hitting the dashboard.
The Fed ended Free Money, and the only thing it broke is the consensual hallucination that spawned during the Free Money era. And look what we got.
At around 4.75%, plus collateral, these are expensive loans for banks.