QE Is Harmful. Would Doing Nothing Be Better For Markets?
QE is supposed to be a monetary bazooka that does magical things. Instead, it hasn’t done much good, while creating serious unintended consequences.
QE is supposed to be a monetary bazooka that does magical things. Instead, it hasn’t done much good, while creating serious unintended consequences.
We know that QE doesn’t work because bank reserves aren’t lent out, and rising asset prices aren’t due to having more of them. Why then the massive bull market?
US banks have been offloading their mortgages to the GSEs, with the pace of selling accelerating over the last 6 months. What could this mean?
Even as US housing prices fuels talk of another housing bubble, banks are making mortgages but are unwilling to hold on to them. What are the implications?
Central bank intervention or bank lending, which is responsible for the red hot US housing market? If both have a role to play, then which is the main driver?
US housing continues to make new highs. Many blame the Fed’s QE and low rate policies for it, but, how much does QE actually affect the housing market?
While bank reserves have nothing to do with crypto’s meteoric rise, QE actually has played some role in it. Except, it just isn’t what everyone thinks it is.
QE is a popular reason cited for the rise in cryptocurrencies, linking the rise in bank reserves with high crypto prices. How true is the QE-Crypto narrative?
What are the true consequences of QE? More frequent liquidity events, short term rates at 0%, dysfunctional repo, and a more fragile system; that’s what.
Large US banks are turning away deposits from their biggest corporate clients. This comes with second order effects that can ripple through the broader system.