The Fed’s reckless experiment… The quantity theory of money, the view that the money supply is the key determinant of inflation, is dead, or today’s mainstream economists tell us. The
"If Chairman Powell does not set expectations and boundaries, the reckless risk taking is a financial stability threat that will amplify the damage to the economy. " via Mike O'Rourke,
At the same time, years of borrowing have left the country’s financial system riddled with trillions of dollars’ worth of debt. Much of it is hidden off the books, raising
The gatekeepers of the American mortgage market are increasingly backing loans to borrowers who have heavy debt loads, highlighting questions about mortgage risk as policy makers debate ways to change the system.
via marketwatch: A year ago, I wrote about the worrying increase in leverage among America’s blue chips caused by share repurchases (“Hollowed-out blue chips are the next subprime”). Today I want