“I’ve been raising money for companies for 25 years and this is absolutely one of the best markets for borrowers I’ve ever seen,” said Andrew Karp, global head of investment-grade debt capital markets at Bank of America.
wsj.com/articles/forei…
wsj.com/articles/forei…
2/ "Companies have issued over $1 trillion of bonds in 2020, with March, April and May being the three busiest months ever for U.S. debt capital markets."
Who needs profits when you've got credit markets like these?
Who needs profits when you've got credit markets like these?
3/ The more we accommodate markets with cheap credit that they don't need, the less companies are incentivized to generate profits.
This only makes normalization of the central bank balance sheet more difficult.
It also makes the economy less productive.
This only makes normalization of the central bank balance sheet more difficult.
It also makes the economy less productive.
4/ This wasn't inevitable. We could have stopped after the first few rounds of QE ended in 2011.
Markets would have stabilized around more sustainable valuations. Expectations would have adjusted.
Instead, policymakers went insane.
cnbc.com/id/100311751
Markets would have stabilized around more sustainable valuations. Expectations would have adjusted.
Instead, policymakers went insane.
cnbc.com/id/100311751
5/ If you want to know what the death of capitalism looks like, this is it.
Sports gamblers shifting to equities, because they correctly perceive that markets have no relationship to the real economy.
Stocks are just ping-pong balls for action junkies.
Sports gamblers shifting to equities, because they correctly perceive that markets have no relationship to the real economy.
Stocks are just ping-pong balls for action junkies.
