This was right on the money. Had you sold commodities, currencies, gold, stocks and other risk assets (and bought bonds and the dollar) around that time, you'd be laughing all the way to the bank right now.
This was right on the money. Had you sold commodities, currencies, gold, stocks and other risk assets (and bought bonds and the dollar) around that time, you'd be laughing all the way to the bank right now.
2 comments:
Good explanation, Mike. Thanks.
The main problem with people and thinking that QE is printing money is the fact that they think that what the Fed is holding is in the economy, when in reality its not.
Anything the FED holds is in what I call a "Black hole". Its not like the FED is transferring those assets that they buy (Tsys, Agency Debt) back into the private sector (or even the public sector).
This doesnt mean QE has no effect, it does, but it doesnt have the effect of "money printing"
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