All spot on. One of the ironies is that the balance sheet of the Fed, if accounted per GAAP, would likely show negative equity for 100bn. So the regional banks who followed the FED shouldn’t be a surprise. Add to it the CRE exposure and disasters are happening. And by the way, the FED balance sheet will never go back to reasonable levels unless we are prepared to see a sort of depression.
“As has always been the case with the unstated objective of the Federal Reserve, “saving the system” will take precedence over stable price.” 100% spot on. We will be back to massive QE and near zero rates within 18 months because the whole house of cards collapses if the Fed doesn’t.
All spot on. One of the ironies is that the balance sheet of the Fed, if accounted per GAAP, would likely show negative equity for 100bn. So the regional banks who followed the FED shouldn’t be a surprise. Add to it the CRE exposure and disasters are happening. And by the way, the FED balance sheet will never go back to reasonable levels unless we are prepared to see a sort of depression.
We can always count on Sri to tell it like it is! Thank you sir!
“As has always been the case with the unstated objective of the Federal Reserve, “saving the system” will take precedence over stable price.” 100% spot on. We will be back to massive QE and near zero rates within 18 months because the whole house of cards collapses if the Fed doesn’t.