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‘They’re Still The Largest Sellers Of Vol.’: And So, The Baton Is Passed To Forward Guidance
Over and over, again and again, the same characterization of DM central banks gets recycled and presented by the folks with their finger on the pulse of markets.
Central banks, through asset purchases and, more recently, through forward guidance, are the "largest sellers of volatility in the market" - that's the blunt version from BofAML's Barnaby Martin, but there are more nuanced versions.
The two-way communication loop between central banks and markets represents the use of total transparen
“Quarters not years”. No kidding. The ECB still thinks it has quarters to play with? Bear’s coming before YE ’18, US recession start in 2019, will rapidly spread to EU. By then the Fed will have replenished a little, not a lot, of their ammo, but the ECB will be still thinking about tightening when it will be: “hello next recession and crisis” with basically no room to cut interest rates. They’re fucked.
Everyone’s fucked. Except the rich. They’re the ones doing all the fucking.