Treasuries are down 8.76% to pick the equities up. They're throwing the treasury at the equities market. That's a theft of tens of trillions, at this rate. That's how they're using the crisis.
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i think you need to look at the actual value of the US dollar. They are incredibly devaluing the currency in order to maintain equities. This doesn't really change net present value if you really think about it, mainly because value is where you find it. NPV calcs messed ~0%
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But the dollar appreciated in a kinda dramatic way putting a whole lot of stress on the r.o.w. And no, NPV calculations are not messed up at the ZLB. What we’re seeing in equities has imho little to do with the Fed and much more with retail traders gambling 2000 style ...
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You could argue that, but I don’t think that’s particularly fair criticism of the Fed. If anything Powell has proved to be one of the few not entirely disastrous Trump picks. What the Fed did in size was going big on treasury repos, domestically but with other CBs, too.
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You think I'm criticising Powell? I pity him. I'm criticising the entirety of the government and that starts at the top. The Fed has shown itself to be not independent.
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