Fed's taper signal revives a Wall Street memory - Economics - AEI:
"A seasoned, albeit cynical, Salomon Brothers bond trader taught me that "when the winds are strong even turkeys fly."
By this he meant that when global liquidity conditions are strong even countries with the weakest of economic fundamentals are able to place government bonds at very favorable interest rates.
By the same token, when global liquidity dries up, those very same countries with weak fundamentals get truly punished by the market."
No comments:
Post a Comment