Duration Risk: How the Fed is Creating the Next Financial Crisis

From Institutional Risk Analyst


"Our view is that the Fed is setting up the US economy for another financial crash a la the mortgage bubble, which was created from 2001 by Fed Chairman Alan Greenspan and his new colleague, governor Bernanke. Yet after three decades of pump priming and other variations on neo-Keynesian stimulus, the proverbial well is empty. Indeed, if one takes an economic metaphor from the Greek legend of Sisyphus, the boulder is rolling back downhill. It may take decades for the US economy to regain these levels of employment and housing prices regardless of the actions taken by the Fed."

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