Actually, what is surprising is that the Fed, which has lowered rates to zero + QE & other buying sprees, has systematically created a system that miss-prices risks, now acts like it isn’t the biggest enabler or widening inequality. t.co/3Q26RTVie5
— Trinh (@Trinhnomics) August 10, 2020
Fed/government has been inciting assett bubble:
…value of US financial assets (Wall Street) now 6.2X size of GDP (Main Street
— Mo Hossain (@MoHossain) August 9, 2020
Surprises of liquidity-based trading in 2020.
1. TGA does NOT matter (Fiscal spending & QE do)
2. realized volatility of QE can be wild (occasionally we have weeks of QT)
3. without a new bill, SBA controls the market before election.
non-surprise: Market follows liquidity.
— Barton (@Barton_options) August 10, 2020
Great chart by @biancoresearch w/data via @uscensusbureau Household Pulse Survey. About 35% of American households expect a loss of employment in the next four weeks. With the percentage of unemployed out of week >15 weeks at 48.8%, the conventional portion of recession has begun pic.twitter.com/OizuXW1yuC
— Danielle DiMartino Booth (@DiMartinoBooth) August 9, 2020
This is the absolute craziest chart regarding housing I've seen in awhile. As red hot of a sector as there is during a recession and a pandemic. Life is so weird
— Michael Antonelli (@BullandBaird) August 9, 2020
Some millennials can’t catch a break … those who joined workforce during financial crisis now finding themselves in similar place; many can’t cover a $400 emergency, have lost most in earnings & have seen worst of job loss as per @stlouisfed @WSJ @uscensusbureau pic.twitter.com/3WqMpByCA9
— Liz Ann Sonders (@LizAnnSonders) August 10, 2020