The media fixation with equities has completely blinded it to what matters. The global economy is about to take an immense loss. Equites are going down with it, as they should. Nothing can stop that now.
But all that matters in terms of systemic risk is credit. That’s the Fed’s target. To unwind the dislocation in soverign debt so that government’s can get on with the fiscal support needed to save lives and mitigate the very worst of economc scenarios. So far, so good:
It will also aim to squash spreads for banks and corporations. More good news:
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