FED frontloads more than $140BN USTs and nearly $30BN MBS purchases in first 3 weeks of May, but equity indices still down around 20% before massive QE cliff in June
Super job as usual. One small disagreement. “the biggest “everything bubble” in human history. “. I think that is true in today’s $ terms but not (yet) in % terms. Japan did something similar to Powell. The Ponzi scheme ended in about 1990. I recall at one point the Japanese stock market was larger than the U.S. stock market. What followed was “the lost decade.” In reality, more like “the lost three decades.” This is what we have to look forward to thanks to JPOW. Although he still appears to have some chance to partially redeem himself by cutting the Fed balance sheet to close to $1T and raising the Fed rate to 4% (minimal “normal” numbers). But the clock is ticking on his chance to do that. As your article reveals, so far in May he’s been doing the opposite with purchases of outrageous amounts of Treasuries and MBS. No doubt intended to hold the 10 year treasury under 3% so as to prop up the stock market. That’s not JPOW’s job nor should it be.
JPOW and the user. Lesson not learned: Don’t mess with Mother Nature (the human body) and don’t mess with the Invisible Hand (economy). Artificial interference messes up the works, especially a stimulant that produces a temporary high and becomes addictive.
Super job as usual. One small disagreement. “the biggest “everything bubble” in human history. “. I think that is true in today’s $ terms but not (yet) in % terms. Japan did something similar to Powell. The Ponzi scheme ended in about 1990. I recall at one point the Japanese stock market was larger than the U.S. stock market. What followed was “the lost decade.” In reality, more like “the lost three decades.” This is what we have to look forward to thanks to JPOW. Although he still appears to have some chance to partially redeem himself by cutting the Fed balance sheet to close to $1T and raising the Fed rate to 4% (minimal “normal” numbers). But the clock is ticking on his chance to do that. As your article reveals, so far in May he’s been doing the opposite with purchases of outrageous amounts of Treasuries and MBS. No doubt intended to hold the 10 year treasury under 3% so as to prop up the stock market. That’s not JPOW’s job nor should it be.
JPOW and the user. Lesson not learned: Don’t mess with Mother Nature (the human body) and don’t mess with the Invisible Hand (economy). Artificial interference messes up the works, especially a stimulant that produces a temporary high and becomes addictive.