' “If… financial stability put our maximum employment and price stability goals at risk…” “A consideration”? Clarida’s comment gets right to the heart of the problem. Financial stability should never have been subordinate to prices and employment; it is, instead, the overarching mandate to be nurtured and safeguarded with intense focus and steadfast resolve. We’re today in the most financially unstable environment of my over 30 years of analysis. Hopefully the President recovers quickly, the election goes smoothly, the pandemic abates, social tensions subside, and a semblance of normalcy returns. But even in the unlikely event of a series of best-case outcomes, this historic Bubble will continue to overhang financial stability.'
- Doug Noland,
Covid Uncertainties, October 2, 2020
'We are in a depression—not a recession, but a depression. And I think the dynamics of a depression are different than they are in a recession because depressions invoke a secular change in behavior. Classic business cycle recessions are forgotten about within a year after they end—the scars from this one will take years to heal.'
- David Rosenberg (
Debt Bugs and Windshields, October 2, 2020)
Context'World faces wave of epic debt defaults, fears central bank veteran'(Banking Reform) - '..my basic definition: A Bubble is a self-reinforcing but inevitably unsustainable inflation.''The ongoing "global government finance Bubble" is unique in history.'