Maybe David is right. The cure for the GFC is beginning to look like it was worse than the disease. The difference between then and now is that the leverage is buried deeper and much of the lending has moved into the shadows. t.co/351KFwljWA
— Danielle DiMartino Booth (@DiMartinoBooth) April 1, 2020
— Danielle DiMartino Booth (@DiMartinoBooth) April 2, 2020
This is the start of a Tsunami of deflation. Gov/Fed/Banks are hopeless in saving this.
Japanification and fear for slow growth when this is over
And last week about japanification and Japan’s economy. We can see that big indexes in Japan still are lower than they were 20/30 years ago due to an elder pop, low interest rates etc etc.. explained in this 5min vid ‘www.youtube.com/watch?v=zZMY1e7j134‘
For the third time this year, equities are 10% overvalued relative to IG credit markets' implied price. Not seeing credit tighten with the same vigor as equities had rallied suggests we're likely headed lower. Credit spreads are at the top of our "what to watch dashboard." pic.twitter.com/63vN5WV5Sn
— Michael Kantrowitz, CFA (@MichaelKantro) April 1, 2020
— Tuomas Malinen (@mtmalinen) April 2, 2020
Irresponsible policy from the Federal Reserve made the coronavirus crisis worse than it had to be.
The fiscal impact of 2008 followed by COVID-19 in the US is beginning to look a bit like the double whammy of Great Depression & WWII. But will politics enable equivalent increases in taxation, especially top rates? @commerzbank via @SoberLook pic.twitter.com/xAuSZTsWsT
— Adam Tooze (@adam_tooze) April 2, 2020
The Federal Reserve on Wednesday said it was temporarily taking steps to ease an obscure capital requirement for large banks to address strained conditions in the Treasury market. t.co/COVoZZHlgM via @WSJ
— TF Metals Report (@TFMetals) April 2, 2020