After pumping over $10T dollars in credit into the global economy, central banks have been pulling the rug from under leveraged nations, corporations, and individuals for three years.
The stage is truly set. We see all the right milestones met and all the necessary preliminary signals getting checked-off.
Tuesday’s market action showed us how nervous traders around the world really are.
So much hangs in the balance right now. The concluding trading week of October 2018 could encapsulate, within its five sessions, the answer to the question: Has the business world recovered from 2008 in a manner that justifies global QT (Quantitative Tightening) or not?
Let’s recap the Federal Reserve’s policy for the past 10 years, as we transition into a new era.