This Ray Dalio thing is above my financial literacy level, but it tracks with my anecdata. I hear people complaining about struggling to make rent, and people struggling to find a place to put hundreds of millions.https://www.linkedin.com/pulse/world-has-gone-mad-system-broken-ray-dalio/?fbclid=IwAR0kRor9Dt94pHKZxjvy9Ze_Kaki1nE8Bwytdj9Kd5_6EIwLln81EvlmuWk …
Sorry, can you explain a bit? How does monetary policy produce a shortage of safe assets?
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1/2 Safe asset shortage exists independent of monetary policy. QE and other “loose” monetary policy can help create more safe assets by backstopping Treasury markets. This is one of the reasons some folks want fiscal expansion, demand for Treasuries mean cheaper public financing
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2/2 Deeper question is why a safe asset shortage? Is it just a problem of governments not doing enough deficit spending or is there a deeper structural problem driving risk-off sentiments?
End of conversation
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