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| To me - "true market rates" are reflective of every force in the market. It has to be this way, and the reality here is that the Fed is, by far, the biggest force. It is the expectations of what the Fed will do in the future that drive this market. But to say that the people setting supply in a market are not "bonafide players" does not make sense whatsoever. If "they" know and "they" need higher rates, the question is - where else can they go with their money? "They" might "give a crap about their ROI" - but what can they do about it?
The world is never just like we think it should be, but we have to live with realities, and the reality is that the supply of money is controlled by a small group of bankers. And, now, it seems clear that interest rates are a direct result of that control. This is simply the way this market works, and we are forced to deal with that. Of course, it is a "market" - and it affects almost every other market. | |
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The 4.5 trillion dollar balance sheet. Continued QE
