The Fed can’t keep this fight going forever -
My Comment : The leverage blow up has begun. Reminiscent of LTCM.
March 29 – Bloomberg (Vildana Hajric and Claire Ballentine): “A secretive money pool craters, causing billions of dollars of potential losses for global banks. Two storied names of American media post their worst days ever in the stock market. Securities regulators say they’re monitoring the situation. And halfway through the afternoon on Monday, the S&P 500 Index was little changed. For investors, the Archegos Capital Management blowup is proving to be just one more example of the uncanny resilience in the U.S. stock market, where neither pandemic nor hedge-fund tumbles can pierce the protective shield of Federal Reserve stimulus. Enjoy it while it lasts, warn the pros. The Fed can’t keep this fight going forever.”
