Josh Wolfe+ Your Authors @wolfejosh Co-Founder @Lux_Capital Trustee @SfiScience Santa Fe Inst Chair @CiPrep Coney Island Prep (Brooklyn) Co-Founder of Carson, Quinn & Bodhi w/ @ltwolfe May. 09, 2019 1 min read + Your Authors

1/ TAKE NOTE

If you liked the capital market distrortions caused by QE—you will just love the distortions caused by controlling the long-end of the yield curve (something not done since WWII to control the cost of debt)

This is a HINT of LIQUIDITY crisis
 https://www.reuters.com/article/us-usa-fed-brainard/brainard-fed-should-consider-targeting-longer-rates-in-a-future-downturn-idUSKCN1SE1JR 

2/ Here is Bernanke 3 years ago explaining HOW the Fed could PEG long-term rates...

3/ Potentially toxic combo:

Artificially suppressed long-term rates
x
net sellers of Treasuries by foreign holders (China)

Risk of weak $ = rising prices for everything priced in dollars (oil, commodities, food)
-> hurts consumers
-> helps investor (non-discret stocks ^)


You can follow @wolfejosh.



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