IS this the Rise of Modern Monetary Policy
The Fed is making the gamble of the century, basically, the Fed is borrowing almost free money to buy securities which will be transferred to investors after the economy recovers. At the moment, the US government is buying securities of every asset classes including junk bonds to treasury notes to stabilize the lowest yield investments. The purpose of these large scale purchases is to subdue panic sellers and stabilizing prices of low yield assets. As a result, those assets will have immunity against defaults and central governments will still be able to rest on the dollar for their own national credit facilities and stabilize their own currency.
STI – Updated Weekly Chart Weekly Candlestick closed above 7 Weeks MA
Last week’s candle stick opened above 7 week MA and closed above it. Overall price movements are not great but there...