For all their degrees and doctorates, I often wonder how stupid can these dudes be? It’s the lack of insight into their own role in creating bubbles and lack of resilience in financial system that amazes me. And then when it all crashes around their ears they respond…
… by wanting to take the madness to a whole new level, Years of Fed repression of yield and volatility has caused corporates to lever up to the moon. Why would they do otherwise when the demand is there and they think the Fed has their back? The resilience of US corporate…
…was always going to be low in ANY recession. Their debt heavy balance sheets provides as much protection as an umbrella made of tissue paper. I don’t blame corporates for levering up to buy their own overvalued equity. I blame The Fed. And there is no stopping their madness.
