The next time you read that central banks have been the heroes of this crisis and monetary stimuli have saved the world, remember…

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Print The Bubble.

The reason why capex is poor is that QE perpetuates overcapacity. Growth is poor because QE props up unproductive government spending and -as u said- housing bubbles

 

Debt accumulation and saver repression are not social policies.

The Global Implementation Of Demand-Side Debt-Fueled Policies Has Made Crises Widespread and More Frequent.

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(Bordo et all)

The #Federal Reserve’s Track Record At Making Estimates Is Abismal.

The #ECB and the #IMF’s Are Beyond Atrocious.

Yet almost the entire market starts CIO morning meetings with “The ECB-Fed-IMF estimates are still strong”.

Two generations of market participants have seen nothing but expansive monetary policies.

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. No wonder we consider small rate hikes “hawkish”.

. No wonder we find it almost impossible to find value.

. No wonder we believe crises come from small hikes after massive cuts.

 

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