The Credit Writedowns Newsletter

Share this post

The Fed crosses a Rubicon of credit easing by buying junk debt

pro.creditwritedowns.com

The Fed crosses a Rubicon of credit easing by buying junk debt

Edward Harrison
Apr 10, 2020
5
5
Share this post

The Fed crosses a Rubicon of credit easing by buying junk debt

pro.creditwritedowns.com

The liquidity fiction

When the Federal Reserve launched its bond buying programs during the Great Financial Crisis over a decade ago, it told the world that it was merely providing liquidity to markets that had needed it. It was acting as the market maker of last resort, it said, because its role was to ensure the integrity of the financial system.

The ke…

This post is for paid subscribers

Already a paid subscriber? Sign in
© 2023 Global Macro Advisors
Privacy ∙ Terms ∙ Collection notice
Start WritingGet the app
Substack is the home for great writing