Under extreme stress, the decentralized finance system worked as designed.
Governments and central banks can manage, but not reverse, a shift in markets and the global economy caused by the coronavirus.
The central bank has become the lender of first resort when it should be the lender of last resort and offer funds at a penalty rate.
The Fed’s reaction to the disruption in repo markets shows how hard it will be for policy makers to reverse their “money printing.”
With many Americans focused on capital preservation, investment flows are no longer motivated by the chase for performance.
Advances in technology and a growing global savings glut are pushing inflation and bond yields lower.
When it comes to ultra-long debt securities, the U.S. government should ignore the warnings from Wall Street.
Markets may need to be rebuilt on a new set of assumptions, but we don’t know what those should be or how they would work.