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

Edward Harrison
Apr 10, 2020
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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…

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