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Showing posts from August, 2022

The Fed After Jackson Hole….Policy error building

IMPORTANT IMPORTANT – From Friday 1st July, we will be phasing out emails sent from sender@liquidity.com. To simplify our systems, we are consolidating our email addresses. All our emails will become sender@crossbordercapital.com. From 1st September, emails sent to ANY email account ending in liquidity.com will NOT work. Please update your records before 1st September. You may also receive a direct communication from your contact to this effect. Please feel free to contact us on info@crossbordercapital.com at any time about this change. The Markets After Jackson Hole: Don't Fight The Fed…Give In Now!   Post-Jackson Hole, the Fed has its head-down and is determined to battle inflation. US policy is front-ended loaded and policy-makers even warn of recessionary pain ahead. However, the quantitative liquidity dimension is being ignored. Fed B/S reduction or QT is asymmetric and non-linear in its effects. It will cause funding markets to bu