Credit markets are full of alarms and no one cares

Bloomberg/Brian Chappatta/11-22-2021

graphic image of moral hazard spelled out in scrabble letters“The Federal Reserve’s corporate-bond bailout in March 2020 has helped encourage a debt binge unlike any other.”

USAGOLD note: There is a whole body of opinion out there that central bank largesse at this level is what ultimately caused the credit implosion and subsequent economic crisis after 2008. If we have an abundance of anything in financial markets, it is moral hazard – and for every inch it gains, we lose a yard of common sense.

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