tag:blogger.com,1999:blog-11906042.post8938531030882785014..comments2024-03-22T11:55:50.335+13:00Comments on Not PC: Quote of the Day: "If you read that central banks are seeking to engineer a cooling down of asset prices..."Peter Cresswellhttp://www.blogger.com/profile/10699845031503699181noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-11906042.post-76230717480132246892017-10-18T14:40:09.911+13:002017-10-18T14:40:09.911+13:00There is a classic scene in a bad movie (I think i...There is a classic scene in a bad movie (I think it's one of the Tremors movies) where the protagonists are running from a bomb. After several calls of" It's going to be big" by one character, another retorts with: "Yes, but is it gonna be today?"<br /><br />This is the way I feel about this whole thing. To give away my age, I hit University pretty much right as the dot com crash hit. In response to that the Fed dropped interest rates to their "lowest level ever", a line that would be repeated pretty much every year since.<br /><br />So for my entire adult life, I have been reading about easy money causing the downfall of the west, the depression to end all depressions. I honestly thought 2007 was it. But no, all we got was another round of "lowest/highest level ever" and on we march.<br /><br />I'm not disagreeing with the assessment that this is ultimately unsustainable, but for something doomed to fail imminently, it's been shambling along for an awfully long time. Anonymoushttps://www.blogger.com/profile/12528073402973889490noreply@blogger.comtag:blogger.com,1999:blog-11906042.post-40176511247793438482017-10-18T10:06:45.503+13:002017-10-18T10:06:45.503+13:00And with the amount of debt in the West, including...And with the amount of debt in the West, including a tsunami of junk junk bonds, they risk a fail unseen before. I don't think the Fed or ECB (certainly not the BOJ) can tighten. The BOJ is effectively paying the bills direct for the Japanese government ($US60 billion per month), and pricing Japanese government bonds. It's a disaster.Mark Hubbardhttps://www.blogger.com/profile/02541153163041831880noreply@blogger.com