FAST FIVE: Rabo: Capitalism? Communism? Fascism? Markets Are A "Step Closer" To A New Ism
Markets Are A “Step Closer” To A New Ism By Michael Every of Rabobank A step closer…but towards what.
I contend the only accurate part of that headline is the 'tapering' – if one is using the apostrophes in a sarcastic manner.
The Fed also introduced a new standing repo facility of $500bn (nowhere near enough if it is ever really needed, but which can and certainly will be increased then) at 0.25%, establishing a RP-RRP corridor alongside the reverse repo rate of 0.05%.
Most people making rational investment decisions in capital markets think this is “capitalism” – and perhaps it is, as the always-worth-reading Branko Milanovic argues.
But do take a moment to ponder the above in-between those you logically spend going short the US Dollar or long the US curve post-Fed, and/or as you follow the investment opportunities regulators tell you to follow “because markets”.