“Remember, the Fed does not control interest rates, they only control their discount rate. When the market stampedes into bonds there’s nothing the Fed can do to keep rates from falling. The panic will send short term rates way above long term, and will lash a lesson into the smug complacency that has kept the creditworthiness spread between US treasury securities and all other debt, from high grade corporate to junk. Y’all strap yourselves in for one wild ride.” – Franklin Sanders
The Editors’ Quote of the Day:
