The nail on the head:

'The main concern today is fiduciary adequacy and not liquidity. We have already borrowed so much (total debt is near 350% of GDP) that our ability to service existing debt is more relevant than access to additional debt. The importance of the Fed to the economy is thus limited, and our fixation with what it does, or does not do, is a distraction from dealing with the real issues."

Something I've said on this site more than once in the recent months.... The fed using monetary solutions for a fiduciary problem.


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