Annaly’s CEO Sees Central Bankers as Possible Blood-Letters
The Marriner S. Eccles Federal Reserve Board Building is seen in Washington, DC June 10, 2004. The Federal Reserve will at least double its 1 percent interest- rate target for overnight loans between banks by year-end, a majority of economists at Wall Street's largest bond-trading firms said.
Photographer: MIKE MERGENAnnaly Capital Management Inc.’s Wellington J. Denahan said she thinks central banks’ efforts to revitalize their economies may one day be seen as the 21st-century equivalent of the medical belief in the benefits of bleeding patients.
On a conference call today to discuss the mortgage-investment firm’s earnings, the chief executive officer talked about “blood-letting,” a “popular prescription for many ills” until the late 1800s, and the similarly abandoned view that life could be created by spontaneous generation to explain her “healthy dose of concern” over the potential results of all the stimulus.