HARRY 3 on Nostr: Now and then. Charles Hugh Smith 28/11/18. QE and zero interest rates haven’t fixed ...
Now and then.
Charles Hugh Smith 28/11/18.
QE and zero interest rates haven’t fixed the structural problem. - rather they have exacerbated wealth and income inequality.
The entire global financial system rests on this one assumption- markets will always be liquid, but liquidity vanishes in contagions.
The fake fix is for central banks to buy impaired assets to create an artificial market.
But fake fixes don’t fix what’s actually broken.
They’re duct tape holding together a broken system.
( read about the 1987 post Stockmarket crash -creation of the USA Plunge Protection Team to get a better picture of where this everything bubble was born. )
https://x.com/terencebobrien/status/1691630919751516360?s=46&t=JP5JVN1HB8mEvVhjOyFZhw
Charles Hugh Smith 28/11/18.
QE and zero interest rates haven’t fixed the structural problem. - rather they have exacerbated wealth and income inequality.
The entire global financial system rests on this one assumption- markets will always be liquid, but liquidity vanishes in contagions.
The fake fix is for central banks to buy impaired assets to create an artificial market.
But fake fixes don’t fix what’s actually broken.
They’re duct tape holding together a broken system.
( read about the 1987 post Stockmarket crash -creation of the USA Plunge Protection Team to get a better picture of where this everything bubble was born. )
https://x.com/terencebobrien/status/1691630919751516360?s=46&t=JP5JVN1HB8mEvVhjOyFZhw