Tuesday, June 04, 2013

The Game...

...is this:  Will the global rise in equities and corresponding wealth effect force the current broken Monetary Channel back into something resembling a healthy banking system?

This is happening quickly in the U.S., less so in the other major economies and Europe as usual being the laggards.  So I fully expect the U.S. to benefit from this global rotation and continue to lead.

We are still in the land of negative real yields.  The Fed's main concern is getting out of this predicament and returning to "normal" monetary policy and creation.

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