All tagged FA Hayek

Attack of the Killer BBBs

Attack of the Killer BBBs

Douglas French
Economics

Roughly $1 trillion in BBB debt is in just five companies plus the shale industry.  The five are household names: AT&T, Ford, General Motors, General Electric, and Dell.  

Jerome Powell’s January hawk-to-dove pivot is now understandable.  He can’t afford for the bonds of Blue Chip names to tip into junk land where buyers will be few and far between. 

The Fed says Expectations Cause Inflation

The Fed says Expectations Cause Inflation

Douglas French
Economics

In the heads of the Fed heads, it’s the expectations of us pawns on the Fed’s chessboard which cause the general price level to increase or decrease.  Through their Keynesian-colored glasses, in the view of Fed economists, the supply of money has nothing to do with price inflation. The problem is us.