-
How Long Will The Fed's Reverse-Quantitative Easing Last?
At the risk of sounding like a broken record, the main drag on markets is not the rolling narrative of politics, it is the money flow of central banks and in particular the Federal Reserve. The stock market has been going up since the credit crunch of 2007/2008 because liquidity has been pumped into the system and made the value of assets go up as the cheap credit has driven participants to seek out assets that will appreciate faster than the interest they have to pay. This is how QE (quantitative easing) saved the global economy and a lot of people’s homes and jobs. Now that rescue cycle is deemed over, the ... (full story)