The Two Towers (Of Volatility): VIX, TYVIX And The Federal Reserve’s Reaction Function (M2 Growing At 23.3% YoY)

by confoundedinterest17

Stock market volatility (CBOE S&P 500 VIX index) and the US 10-year Treasury note volatility are subdued after the recent Corona spike. During the financial crisis, The Fed launched QE1 to combat a declining economy. They repeated the massive intervention in 2020 with QE Infinity.

The spread between the VIX and the S&P500 rose the most in 5 years.

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The Fed is currently printing money (M2) at a rate of 23.3% YoY.

Asset bubble anyone?

Powell has his money cannon firing away on fully auto.

 

 

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