By Jared Dillian of Mauldin Economics
A few days ago, the Federal Reserve announced that it would buy a “broad portfolio” of corporate bonds, to go along with its ETF purchases.
Because of the Fed’s actions, corporations will be able to borrow at lower rates.
What could be wrong with that?
First, let me say that complaining about the Fed is its own genre of financial commentary. Some people elevate it to an art form. I usually don’t engage in it, because it’s unproductive and not conducive to making money.
Some commentators call the Fed an arsonist. If that is true, then go find some marshmallows.
Still, there is something about the corporate bond purchases that is a bridge too far…. Read More