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Written by Paul Fabra
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Friday, October 14, 2011 |
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At this very moment, financial markets are again in disarray, threatened by a growing overhang of illiquid assets. While any illusion to generate fresh resources through economic growth seems to have given us the slip, Ben Bernanke has launched Operation Twist—a maneuver which, by itself, will further impair the liquidity of nothing less than the Fed’s portfolio.
The $400 billion program aims at driving down long-term interest rates. Such an aim, coupled with a central bank overnight rate set at zero, is the Read more |
