"Policymakers are increasingly divided over how to steer the economy through a second wave of COVID-19, threatening President Christine Lagarde’s hard-won peace."
Negative interest rates do not obey the conventional physics of money. As rates approach zero – behaviours change. The controls reverse...When money costs nothing it is worth nothing.
"It is hard to become too bearish. As we look into 2021, growth should be stronger, policy will stay supportive with further fiscal spending. A vaccine is also expected to be deployed and life to return closer to normal by the middle of next year."
"We are not making [Trump’s tax] records themselves public because we do not want to jeopardize our sources, who have taken enormous personal risks to help inform the public."
This broad view of the relationship between Fed actions and stock market performance appears to suggest a causal link going from central bank policies to asset prices
"We have targeted the 200-day moving averages for the S&P 500 and Nasdaq 100 as good levels to think about, which are approximately 6% and 14% lower, respectively." - Morgan Stanley
"Our communities and the environment are inextricably linked, and Bank of America cares deeply about both and continues to explore innovative ways to enable investors to use their investments to help address these societal challenges."
Central bankers have been playing an extremely dangerous game of "extend and pretend". To keep the markets afloat in a darkening economic picture requires ever larger bailouts and, eventually, the full socialization of the financial markets...
