5 ms·
Interest rates dont mean anything anymore(ie you cant draw any conclusions about the risk the market is pricing in). The entire credit market is manipulated by
by tryptophan 5y ago
Interest rates dont mean anything anymore(ie you cant draw any conclusions about the risk the market is pricing in). The entire credit market is manipulated by the FED.
The fed owns like 20% of all federal debt, bought with printed money. Recently they have also been printing so much that they eat up >50% of bond auctions.
- imtringued 5y agoThank you. Now I am fully convinced that "printed money" and "money printing" is a meaningless term that means absolutely nothing. Before that I assumed that there was some logic behind the term but it is clear that there isn't.
- Gustomaximus 5y agoThere is some logic. It's heading towards MMT https://en.m.wikipedia.org/wiki/Modern_Monetary_Theory https://en.m.wikipedia.org/wiki/Modern_Monetary_Theory Many people misunderstand what MMT actually is, cherry pick parts and call that MMT. It's interesting concept, I dont think it will work but many do.