Therein lies the rub. The Fed is in yet another catch 22 of its own making due to they way they have abused QE and other measures, for political purposes, to bail out various assets ever since Ben Bernanke. Today, if the market gets even a sniff that the Fed is planning on returning to free market policies, every asset market will crash instantly. It will be a political and media firestorm, the GOP will lose control of the house and senate because they watched as the 401k's and pensions of tens of millions of registered voters took a crap. The socialists will be propagandized by media claiming capitalism was the cause of their misery, and the people just stung by their net worth being eviscerated, will vote them into office. In other words, for political purposes, there is not a chance that's going to be allowed to happen, and the fed will continue its current trajectory for the good of the planet. So keep buying the dips.
I read that as well, if nothing else it is the first time anyone in government admitted what has been a discussion for a long time, that QE adds to inequality, and it is a fair point that Trump is fighting that, at least nominally. you are also correct, if hedge funds go bust, there will be no tears.
the real question is what happens to the rest of the world if the Fed stops being the buyer of last resort? maybe this is how they get stable coins to take their place in the tradfi world
Therein lies the rub. The Fed is in yet another catch 22 of its own making due to they way they have abused QE and other measures, for political purposes, to bail out various assets ever since Ben Bernanke. Today, if the market gets even a sniff that the Fed is planning on returning to free market policies, every asset market will crash instantly. It will be a political and media firestorm, the GOP will lose control of the house and senate because they watched as the 401k's and pensions of tens of millions of registered voters took a crap. The socialists will be propagandized by media claiming capitalism was the cause of their misery, and the people just stung by their net worth being eviscerated, will vote them into office. In other words, for political purposes, there is not a chance that's going to be allowed to happen, and the fed will continue its current trajectory for the good of the planet. So keep buying the dips.
That would seem most likely... but politics is a funny thing. Sometimes there is some other agenda that is not apparent
I read that as well, if nothing else it is the first time anyone in government admitted what has been a discussion for a long time, that QE adds to inequality, and it is a fair point that Trump is fighting that, at least nominally. you are also correct, if hedge funds go bust, there will be no tears.
the real question is what happens to the rest of the world if the Fed stops being the buyer of last resort? maybe this is how they get stable coins to take their place in the tradfi world