33 ms·
So the Federal Reserve is admitting to a Martingale strategy. Interestingly they’re the one entity on the planet that can pull it off at scale. https://en.wiki
by koolba 7y ago
So the Federal Reserve is admitting to a Martingale strategy. Interestingly they’re the one entity on the planet that can pull it off at scale.
https://en.wikipedia.org/wiki/Martingale_(betting_system) https://en.wikipedia.org/wiki/Martingale_(betting_system)
- jdpigeon 7y agoshudder
- resters 7y agoIt's not going to work much longer. We've already seen the Fed make moves that are significantly beyond what it did in 2008, and since 2008 firms have been aware this would happen and have been less risk-averse as a result. Creative destruction is nearly absent as an engine for growth in the US economy, and we are all suffering from the lack of innovation that would otherwise occur.
- jkhdigital 7y agoHadn't seen this language used to describe the everything bubble, but it fits. There's no gambler's ruin when you have an infinite supply of money.