> I dare go out on a limb and guess that at some time in the not-so-distant future, the Fed will introduce quantitative easing again just to prevent a meltdown of the Treasury market and the global financial crisis such a meltdown would create.
That will happen if reasonable people are (still) at the helm. With Trump I'm not so sure ...
fascinating stuff, and it was good to go back to your post from 2023.
One fears the day where Trump has his Liz Truss moment. If I had anything to say in politics, I'd always keep James Carville's words about the bond market in mind. And already break out in sweat thinking about how the ten-year went back up to 4% yesterday.
I'd like to understand the basics of how this scenario could play out in terms of asset valuations.
> I dare go out on a limb and guess that at some time in the not-so-distant future, the Fed will introduce quantitative easing again just to prevent a meltdown of the Treasury market and the global financial crisis such a meltdown would create.
That will happen if reasonable people are (still) at the helm. With Trump I'm not so sure ...
fascinating stuff, and it was good to go back to your post from 2023.
One fears the day where Trump has his Liz Truss moment. If I had anything to say in politics, I'd always keep James Carville's words about the bond market in mind. And already break out in sweat thinking about how the ten-year went back up to 4% yesterday.
I'd like to understand the basics of how this scenario could play out in terms of asset valuations.
QE = financial sector wins?
Higher interest rates = real estate loses?
I may have been slightly prescient about the Trump/Liz Truss thing...