The entire curve shifted down by a lot that’s true, but that means the npv of the bonds went up, not down unlike what you said in your original statement. I don’t understand you mean with your original tweet
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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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Replying to @DanielleFong @eigenrobot
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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Replying to @costa11235 @eigenrobot
i don't think the dollar appreciated in the last two decades, except vs a very few products, not for housing, medical, education, and these are what divide classes. we have become exponentially more classist.
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Replying to @DanielleFong @eigenrobot
Imho, that got little to do with the Fed and a whole lot more with American institutions and policy choices. I don’t get why so many folks blame the Fed for unrelated policy failures. They’re the wrong recipient in most cases
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Replying to @DanielleFong @eigenrobot
If only they were the lynchpin, alas they’re not. The Fed doesn’t even control most dollar creation. Being the reserve currency issuer like the Fed/ treasury are in tandem isn’t only fun and games. And the Fed provided swap lines to most of the rest of the world & that was good
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Replying to @costa11235 @eigenrobot
they should let it fall apart. the wrong things are being kept alive.
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Replying to @DanielleFong @eigenrobot
It’s not the Fed’a job to make that judgment, they’ve got the dual mandate of jobs + inflation. Exploding unemployment + collapsing inflation expectations make for an easy call - is IE has picked up recently, so it’s gonna be interesting to watch for sure
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I think that's naive.
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these are just totally unprecedented times, we must demand more from our institutions, more from our leaders and this. this. is. shit.
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End of conversation
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