Economist Stephen Roach: the Fed needs to continue raising rates to break the US economy's 20-year dependence on asset bubbles: project-syndicate.org/commentary/fed… 
I agree with him on this, but we should not be naive about the effects of tighter monetary policy when there are so many asset bubbles that have inflated around the world. You can't taper a Ponzi scheme...
After a decade of record low interest rates and quantitative easing, the global economy is absolutely saturated with malinvestments, bubbles, and other distortions.
Tightening monetary policy will expose those distortions, leading to a crisis:
forbes.com/sites/jessecol… $TLT $IEF
Tightening monetary policy will expose those distortions, leading to a crisis:
forbes.com/sites/jessecol… $TLT $IEF
If Powell treats today's bubbles like Volcker treated inflation in the early-1980s, there's no doubt that we'd experience a depression.
It would be the right thing to do in the long run, but very tough medicine. It would not be popular politically.
It would be the right thing to do in the long run, but very tough medicine. It would not be popular politically.
