Jerome Powell claiming Fed policy doesn't cause inequality may be the biggest lie ever uttered to the American public. QE morphed into an asset bubble ponzi trap (predictable🤦‍♂️)@ericrosengren @RobSKaplan @neelkashkari @RaphaelBostic @marydalyecon @steveliesman @michaelsderby pic.twitter.com/CoO8yNHrE1
— M/1_LP (@MI_Investments) June 11, 2020
This is just getting silly. Record levels of corporate leverage, the longest economic expansion ever, the most extreme valuations in US history, the most unfavourable economic conditions in nearly 40Y & a record disconnect between stocks & macro fundamentals. This won’t end well. pic.twitter.com/njwFf9WaIo
— Julien Bittel, CFA (@BittelJulien) June 12, 2020
Central banks are caught in a paradox. Neg.rates = bad option; QE needed for monetizing sovereign + corp debt is inflating asset bubbles, too, and inequality which could turn protestors on them. Short circuiting the 'portfolio balance channel' = a way out, but asset prices👇
— M/1_LP (@MI_Investments) June 11, 2020
Dallas Fed President Richard Fisher told CNBC that he's worried the U.S. central bank is in a "Hotel California" type of monetary policy because of its "engorged balance sheet." https://t.co/psPu52NMiM
— M/1_LP (@MI_Investments) June 11, 2020
CORPORATE DEBT APPROACHING A NEW RECORD AT 50% OF GDP $HYG $LQD pic.twitter.com/kWm3gfQVmp
— Win Smart, CFA (@WinfieldSmart) June 12, 2020
DEBT SERVICE THAT EXCEEDS PROFITS pic.twitter.com/HE4wBwYoyH
— Win Smart, CFA (@WinfieldSmart) June 12, 2020
Per DB, nearly 1 in 5 US companies have debt service costs that are greater than profits. YS #DriehausAlts pic.twitter.com/AgHypENrvm
— Driehaus Capital Management (@DriehausCapital) June 11, 2020
The decoupling of fundamentals and asset prices in the euro zonehttps://t.co/KoCV5MN8VP pic.twitter.com/Y6EOUjRiH6
— Patrick Artus (@PatrickArtus) June 12, 2020