2min chapter

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Are We Headed Towards a Monetary Breakdown? | Jeff Snider

Hidden Forces

CHAPTER

The Fed Is Ineffective in What?

The 2008 financial crisis was the high water mark in the industry's collective sense that it had conquered risk. The level of credit and money in the economy has changed completely changed in the opposite direction. I think what happened is the Fed doesn't factor at all, except that market participants know the Fed is ineffective. In a world where you're aware your risk models were completely worthless, that makes it even more you become even more risk averse.

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