MacroVoices #375 Mike Green: Banking Crisis, Debt Ceiling, De-dollarization and more
Macro Voices
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The Role of Bonds in the Crisis
If we were actually experiencing a collapsing equity and bond market, my sense is that the urgency of avoiding this issue would be significantly greater. Unfortunately, just like COVID, it became very clear to financial market participants that something important was happening in December 2019, January 2020. Those who tried to get ahead of it by shorting in January were blown up as the market went to new all-time highs in February, only to collapse into March. The markets have no mechanism for incorporating that information short of massive employment loss.
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