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| I don't like QE generally, but a scenario like this is exactly what the Federal Reserve exists for. The Fed can and would step in to buy bonds to stabilize the global market... eventually. It wasn't that bad yet. I watched MBS to Treasury credit spreads get 3x higher during March 2020 before the fed stepped in and said they would be buyers of last resort to "unlimited".
This story may have elements of truth but I doubt it is fully true. | |
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A bond traders view on what happened April 9th
