Friday, June 17, 2016

Central Banks Never Had Control #TheFed

Central banks whom control little more than short-term rates after Congress forced them to support public debt during WWII do not control markets or the economy. The public, however, loves to believe that they (central banks), the President, or a small but all powerful group does. This belief makes life easier by providing them a built in excuse when markets inevitably move against them. "It wasn't my inability to read the message of the market but rather the Fed's fault for doing something it wasn't suppose to." The majority, a group notoriously a day late and dollar short in terms of timing, become the bagholders of trend transitions because their core beliefs 'flexible' interpretation.

Headline: DoubleLine's Gundlach says 'central banks are losing control'

NEW YORK (Reuters) - Jeffrey Gundlach, the chief executive of DoubleLine Capital, said on Tuesday investors are dropping risky assets and turning to safer securities including Treasuries and gold because they are losing faith in central banks.



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