High Stakes in the Liquidity Game

Posted on Opinions

Global dollar liquidity surged in 2020 with the Fed’s $120B monthly bond buying program flushing the system with enormous sums of cash that facilitated the fastest post-recession gain in equities since WWII. All this liquidity needed to find a home and it did out the risk curve where investors remained giddy, paying a premium for […]

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Fed Tapering and Higher Real Yields

Posted on Opinions

The chart gives us a different way to view potential market adjustments once Fed tapering gets underway. It demonstrates the US needs a whole lot of financing owing to bulging fiscal and external account deficits (Twin Deficits) which together have surged to almost 18% of GDP. This demand for financing would have typically forced an […]

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