Josh Wolfe @wolfejosh VC, entrepreneur, fund manager @Lux_Capital; Chair @CiPrep Coney Island Prep; Trustee @SfiScience Santa Fe Inst; CoFounder of Carson, Quinn & Bodhi w/ @ltwolfe May. 09, 2019 1 min read

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.



Bookmark

____
Tip: mention @threader_app on a Twitter thread with the keyword “compile” to get a link to it.

Enjoy Threader? Sign up.

Threader is an independent project created by only two developers. The site gets 500,000+ visits a month and our iOS Twitter client was featured as an App of the Day by Apple. Running this space is expensive and time consuming. If you find Threader useful, please consider supporting us to make it a sustainable project.