Great article in the FT today
There's a great article in the FT today lamenting how Powell warned that the Fed must allow higher volatility, only for him to clamp down on it the second markets ran into trouble. Now he's gone way beyond Bernanke to bail out everything.
The result is that the leverage-monster gets bigger and the reckoning is pushed further into the future.
Investors and chief executives are learning that no matter how imprudent their borrowing in the good times, when the bad times inevitably arrive, they will be thrown a lifeline.
