Investing

The Man Who Advises the New York Fed Says It and Other Central Banks Are “Fueling a Ponzi Market”

The Man Who Advises the New York Fed Says It and Other Central Banks Are “Fueling a Ponzi Market”

By Pam Martens and Russ Martens: January 22, 2020 ~ On Monday, a member of the New York Fed’s own Investor Advisory Committee on Financial Markets, Scott Minerd, published a critique which he headlined as follows: “Global Central Banks Fueling a Ponzi Market,” with this scary subhead: “Ultimately, investors will awaken to the rising tide of defaults and downgrades.” The thrust of the article is that central banks (which include the New York Fed’s Wall Street money spigot that was launched on September 17, 2019) are creating a Ponzi scheme of liquidity that is hiding the true state of risk in both the stock and bond markets. The implication is that without the Fed’s cheap money flooding markets, interest rates on questionable debt would be much higher, thus providing a red flag for investors. Minerd develops his thesis as follows: “The disturbing trend is that despite the rally in risk … Continue reading

Source: wallstreetonparade.com

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