The end of free market

[ny_quant]

"There is no such thing as a free market anymore," Deutsche Bank's global head of foreign exchange research, George Saravelos, wrote in a special report titled: The end of the free market: impact on currencies and beyond." In a matter of weeks, policymakers have become a backstop for private-sector credit markets. At the extreme, central banks could become permanent command economy agents administering equity and credit prices, aggressively subduing financial shocks. It would be a bi-polar world of financial repression with high real economy volatility but very low financial volatility. A 'zombie' market."

"What we're witnessing here is nothing less than the death of capitalism and birth of something new," said Mati Greenspan, the founder of analysis and advisory firm Quantum Economics. "It's quite fascinating, really."

"By offering to buy an 'unlimited' amount of assets from the market the Fed is basically saying that they'd rather nationalize the markets than see prices drop. What started out a decade ago as an experiment in monetary policy now has us witnessing the transition to a new economic system."

https://www.forbes.com/sites/billybambrough/2020/04/13/donald-trump-and-the-fed-have-ended-the-free-market/#78bdd9684ef0

Comments

[misha-b.livejournal.com]

Fascinating. Not sure what to think about it.

[ak_47]

Train wrecks are fascinating sight, as long as you're not involved personally.

[misha-b.livejournal.com]

We don't know whether it is a train wreck yet.

[snake-d-ha.livejournal.com]

Да, так и есть. Очень забавные ощущения.

[sydorov47.livejournal.com]

Как я понимаю центробанки эмитируют деньги и на них скупают активы.
Если это так, то в какой-то момент должна включится инфляция.
Это на мой, любительский взгляд.

[ny-quant.livejournal.com]

Точно так же многие, включая и меня, думали в 2008, но ничего такого не произошло. Более того, федералы реально хотели и до сих пор хотят, чтобы была хоть какая-то инфляция (target ~ 2-3%), но у них не получается. Упрямая штука.

[sydorov47.livejournal.com]

Опять же - в моем разумении - тогда это был разовый вброс, и за ним последовал подъем. В этот раз масштаб вброса больше, а что последует пока никто не знает.

Ну ничего. Туалетная бумага, тушенка, вермишель и патроны пока есть...
;-)