lower for longer

From QE to Eternity: The Backdoor Yield Caps

By |2020-06-03T18:14:49-04:00June 3rd, 2020|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

So, you’re convinced that low rates are powerful stimulus. You believe, like any good standing Economist, that reduced interest costs can only lead to more credit across-the-board. That with more credit will emerge more economic activity and, better, activity of the inflationary variety. A recovery, in other words. Ceteris paribus. What happens, however, if you also believe you’ve been responsible [...]

Fool Part 2; No Rational Basis

By |2015-10-12T14:24:57-04:00October 12th, 2015|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Since some markets seem to be waiting on either longer lingering in ZIRP (US) or renewed and heavier QE (Japan, Europe) it is worth examining exactly what they are anticipating. Obviously, that desire doesn’t extend into the real economy since the downward fluctuation in 2015 pretty much dissolves and absolves any direct monetarism correlation. What is left is a high [...]

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