Yukon Cornelius said:
Wouldn't the Fed just dropped rates to near zero?
That would force banks to find a new place for their reserves which are currently getting paid handsomely risk-free.
Into a market that can't afford anything at current prices, with a bond market that is refusing to accept lower to take on American debt.
It would be gasoline on a fire.
I was about to post this but might as well lump it in here. It's piggybacking on my recent discussions that you can't compare where we are now to previous eras like late 90's or 2007. This is proof that the plumbing behind the scenes is doing the complete opposite of what it did then.