Yada yada QE yada yada debasement yada yada bubbles as far as the eye can see yada lifted on a tidal wave of money yada yada tulips yada yada will end in tears yada yada we have learned nothing yada yada subprime contained yada
Every single opinion-former on the planet, basically
I compared QE to persuading a fat man to exercise by paying too much to buy his car, and expressed reservations about how the mechanism relies on pumping money to the (ideally leveraged) asset-rich. But the bubble thing has run out of control, with people whoâ??d struggle to distinguish an interest coverage ratio from a sucking chest wound holding forth on the sharp rise in cov-lite loans. Letâ??s concede that much about asset prices which is worrying, but shutting down QE on the basis of what we see so far is akin to responding to a stalled elevator by drawing lots to decide who gets eaten first.
What is a bubble? The current definition appears to be â??anything that has gone up a lot in priceâ?. This wonâ??t do.
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