This will be blamed on COVID-19, but the problems go much deeper. Last year the Fed lost control of the repo market. the event was widely discounted at the time as an end-of-tax-year fluke. It wasn't. Six month ago, the yield curve inverted. People who should have known better said "this time is different."
Speculators have been trained over the course of 10+ years to buy the dip. The Fed has your back.
What we're seeing is the beginning of the end of that resolve.
The last time this happened was during the GFC. It's not normal, and it's probably not a one-time event, either.
Speculators have been trained over the course of 10+ years to buy the dip. The Fed has your back.
What we're seeing is the beginning of the end of that resolve.
The last time this happened was during the GFC. It's not normal, and it's probably not a one-time event, either.