Join institutional investors, analysts and strategists from the world's largest banks: Subscribe today
Already have an account? log in
Are Central Banks Trying To ‘Purposely’ Engineer Volatility? These Investors Think So
Ok, well what better way to start your Friday than with some survey data?
No, but sarcasm aside, I was just scanning some things this morning and the latest iteration of BofAML's European credit investor survey betrays something interesting re: how market participants (or at least the banks, insurance players, pensions, hedge funds, and managers the bank usually polls for these things) are thinking about central bank communication.
For months, the worry has been that an upturn in inflation pr
Thanks H. Another cool article.
In the short run, the volatility central bankers are trying to engineer seems to be the propping up kind. Gotta keep inflating market bubbles to create the ‘wealth effect’.
That’s because they need to distract us from the other (long-term) kind of volatility they’re engineering: debasement of the currency via inflation of the money supply.
The Fed is 99% of the way there! 1% to go. The problem, as history shows, is that the final race to the bottom will be ugly…