The New CS Board

[jumanji0881]

One thing that is different is that QE is reaching the limits of positive impacts The Fed's balance sheet is expanding at the rate of $1Trillion per year and the markets (bonds, RE, and stocks) have gotten frothy. Stocks no longer reflect the economic fundamentals. RE is back to 2006 in some areas like San Francisco. Locally home prices in Everett, WA increased 25% y-o-y last month. People have taken on a lot of risk in reaching for yield in junk bonds. All of this with a backdrop of a slowing global economy. QE is not leading to sustainable economic growth (GDP at 1.8%).