Morgan Stanley’s Caitlin Long, tells David Faber and Gary Kaminski why Fed policy is killing capital :
Financial System Claims are 30 times the treasury yields and as a result when you get into these giant margin call situations where credit risk expands and the financial sector calls for margin, they call for cash, treasuries and agencies. So you have this sort of artificial non-fundamental demand for treasuries that help in these situations to drive yields lower but it’s artificial
Article originally published on www.mises .org
