credit fed Markets

$7 Trillion And Signs Of Addiction.

As ever, the whole thing is a bit of a paradox.

As ever, the whole thing is a bit of a paradox.
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9 comments on “$7 Trillion And Signs Of Addiction.

  1. I suppose the Fed will keep on pumping. And the more it does, the more the markets will be separated from economic reality. Mere money cannot stop a virus anymore then shining a flashlight up one’s ass or a bleach injection.

  2. Michael says:

    is this a new type of jubilee? Necessary, unclear if sufficient, yet with unknown unintended consequences. I would feel calmer if this was a movie rather than our cumulative lives / livelihoods.

    • Tom says:

      While there is uncertainty and there are bound to be unintended consequences – the addiction that Heisenberg alludes to is a fait accompli – from the Fed’s actions in the short to medium term the situation is quite straightforward: markets are headed higher.

      Of course, there is a possibility that rising tension between the United States and China may escalate into a grinding, non-military, conflict – a cold war, if you will – that presents a new black swan event for nascent markets.

      • RStantz says:

        And the Fed relentlessly signals to all these Hopium addicts that they are not sure of their control of the situation –every Fed official from the Chair on down has been liberally sprinkling their bromides with the word “uncertainity” in various and sundry forms –and in contrast to “risk”, “uncertainty can neither be measured nor managed.

  3. My wife at dinner last night:

    “A friend my age just retired. But he’s been at Apple for decades so he must have more money than God.”

    Me: “But does he have more money than Jerome Powell?”

    My wife, non-plussed: “I guess Fed humor isn’t my cup of tea.”

  4. Canuck says:

    Another big bankruptcy (Hertz). Interesting to see if this changes the funds flow.

    • Stevevan says:

      There will be lots more, how can all these businesses with tight margins,(restaurants, retailers, etc) survive now with 50% less customers? I went out the other day and its a whole new strange experience, and not enjoyable.
      Instead of sauntering around shopping, usually buying stuff I don’t need, now I have to wait in line to get in, carefully find what I “need”, and get the hell out, to avoid germs and let some other poor shopper in. Can’t see it working ……

  5. Vlad is Mad says:

    Taper Tantrum 2.0. 5 trillion of issuance. Fed can monetize 70%. Who is going to buy the remaining 1.35 trillion?

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