Why The Fed Doesn’t Have to “Unwind” QE
One of the more common questions I get is about QE and the Fed’s “exit strategy”. Many people seem to think the Fed has to unwind its balance sheet [ … ]
Practical Views on Money
One of the more common questions I get is about QE and the Fed’s “exit strategy”. Many people seem to think the Fed has to unwind its balance sheet [ … ]
There’s been some good discussion in recent days about QE and whether it is actually legal or not. Frances Coppola, the Telegraph and researchers at the University of Sheffield have [ … ]
Is inflation coming? Is the US economy weaker than we think? Should the Fed tighten? I wipe the dust off my crystal ball for you.
Important chart here from Michael McDonough at Bloomberg. It shows the spread between Italian sovereign bond yields and corporate bond yields. As you can see, as the government yield has fallen quite dramatically the corporate yield hasn’t followed.
that’s really what our financial system is. It’s this crazy construct of the human mind. And it’s always evolving and adapting with the times. And our limited minds are constantly trying to keep up with it all. It kind of makes one wonder – does anyone really know what’s going on?
Long time readers know that I think QE’s impacts have been vastly overstated….
One thing I’ve mentioned a number of times in recent months is my belief that we could very well enter the next recession in the USA with the Fed still [ … ]
When you study QE you really need to account for how it’s implemented and in what environment it’s implemented. I’ve long stated that QE1 was probably much more effective than [ … ]
There are two camps in the world when it comes to thinking about QE and the stock market. There are those who view QE as an asset swap that is [ … ]