Yellen Is Flat-Out Wrong: Financial Bubbles Are Caused By The Fed, Not The Market…(Get Out Of All Paper Assets!!)
by Jeffrey Snider”
ZeroHedge.com
07/05/2014
The selloff last year was a desperate warning about the lack of resilience in credit and funding. That repo markets persist in that is, again, the opposite of the picture Janet Yellen is trying to clumsily fashion. Central banks cannot create that because their intrusion axiomatically alters the state of financial affairs, and they know this. It has always been the idea (“extend and pretend” among others) to do so with the expectation that economic growth would allow enough margin for error to go back and clean up these central bank alterations. That has never happened, and the modifications persist. Resilience is the last word we would use to describe markets right now, with very recent history declaring as much.
The Rest…HERE
