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Blue Magic: Addicted Markets Get Fix As Central Banks ‘Resume Race To Zero Posture’
It shouldn't really come as a surprise that policymakers the world over have seemingly slammed on the brakes when it comes to the short-lived global tightening effort.
It's hard to wean somebody (and in this case, "somebody" is the market) off a powerful drug and monetary accommodation (especially in its post-crisis incarnation) is pretty potent stuff ("blue magic, that's a brand name").
In addition to the "addiction liability" and the fact that a word awash in debt isn't exactly conducive to
Let’s talk pension funds. Long-term pension funds have to move up the risk ladder to achieve their desired or required returns. The Fed and seemingly all central banks, are now helping those people who have taken enormous amounts of debt and not those people who are being astute and saved. Also they are doing a huge disservice to future pensioners. Kicking the can down the road again this can’t end well.