One Unintended Consequence of QE

Over the holidays we were reviewing previous posts on QE and financial repression.   Though posted almost 4 years ago, we thought this is very appropriate and timely to today’s macro climate.

One danger of the lack of price discovery [in the bond market caused by QE] is the potential formation of a positive feed-back loop, where other markets fail to discount these distortions and act accordingly. One prominent economic strategist recently stated, “ We’re in a depression. That is what the bond market is telling us.”  Only time will tell, but decision makers would be well advised to at least partially discount the signal coming from the bond market.

Advertisements
This entry was posted in Uncategorized. Bookmark the permalink.

2 Responses to One Unintended Consequence of QE

  1. Pingback: Crowdfunding and the Bond Market by Jason Galanis | Jason Galanis Beverly Hills

  2. Pingback: Growth in Green Bond Industry by Jason Galanis | Jason W Galanis

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s