Entirely so, this is the point of QE

Andrew Orlowski thinks that Son and Softbank are in for a reckoning. Probably right too. But:

For years, too much money has been chasing too few good ideas.

It worth recalling that this is deliberate. This is the point of QE.

Lower the return on safe assets – government bonds – and force those looking for yield out along the risk curve. Near abolish riskless profit and force those looking for profit to take more risk. This actually has been, all along, the point of QE.

7 thoughts on “Entirely so, this is the point of QE”

  1. Even the experts seem to miss this point. Jeremy Grantham, a top asset manager, has called the market top half a dozen times over the last decade. Dominic Cummings retweeted Grantham last week, saying “we’re in late stage of 1929-style crazy bull market”. But as long as the money keeps flowing and the music keeps playing, it’s hard to see why anyone would stop dancing.

  2. . . . and force those looking for yield out along the risk curve. Near abolish riskless profit and force those looking for profit to take more risk. This actually has been, all along, the point of QE.

    More government money sloshing around makes people do stupid things. Great policy! It’s almost like covid had to happen to give cover to the calamity these twats have unleashed.

    So, where to put cash so it doesn’t get totally hosed?

  3. Orlowski? At the DT?

    Anyway, there seems to have been excess liquidity in the system post- (pre-, maybe?) the TMT bust in 2000. All asset classes went through a period (about 24, 36 months) of supra-normal returns, pretty much sequentially, prior to the CDO explosion.

  4. Orlowski has been doing a weekly DT column for a month now – at least that’s how long I’ved noticed it.

  5. @Ducky
    Yes, I wondered how AO would fit in at the new ‘woke’ DT. But, apparently, the Business section hasn’t been infected (yet).

  6. tbf the wokeism in the DT is essentially confined to the “something for the ladies” section between the editorial and the obits. Editorial and business are still, on the whole, fairly sound.

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