'Autumn is set up for some serious instability. There’s all this talk of the need for the Fed to create additional bank reserves. The issue is not a shortage of reserves but a gross excess of speculative leverage. It started this week. The Fed’s balance sheet will be getting much bigger. The Fed and the markets were blindsided by this week’s repo market instability. The surprises will keep coming.'
- Doug Noland,
No Coincidences, September 21, 2019
Context'..asset inflation is the most dangerous type of inflation..''..The efficacy of global monetary stimulus is at a critical juncture, as are the world’s financial, economic and geopolitical backdrops..''..It has the feel that a decade of egregious monetary inflation and speculative Bubbles is about to get Some Comeuppance.'