Trade street, great article! I have seen a lot news on the bond market and nice to get some clarification on why it's been down lately. Question on banks specifically, with the FED continuing to try and save FRC, will this create a scenario where banks will be more risky in future knowing that the FED will come in and save them?
Moral hazard is certainly a concern. Right now the signaling is that FRC will not be bailed out. I think the existing monetary paradigm is on the decline and bitcoin will play a major role in the next global monetary regime. The Fed/Gov't can't allow the banking system to collapse, so I would expect more liquidity from central banks in the future. This will drive asset prices.
Trade street, great article! I have seen a lot news on the bond market and nice to get some clarification on why it's been down lately. Question on banks specifically, with the FED continuing to try and save FRC, will this create a scenario where banks will be more risky in future knowing that the FED will come in and save them?
Moral hazard is certainly a concern. Right now the signaling is that FRC will not be bailed out. I think the existing monetary paradigm is on the decline and bitcoin will play a major role in the next global monetary regime. The Fed/Gov't can't allow the banking system to collapse, so I would expect more liquidity from central banks in the future. This will drive asset prices.