Menu Close

Gary Shilling's Guide to the Post-Pandemic Economy, Part 1

view original post

Fed generosity in the form of record-low interest rates and quantitative easing propelled the 582% rise in the S&P 500 Index since March 2009, and Wall Street has come to rely on the central bank as a backstop for equities, corporate bonds and other riskier assets, first via the so-called Greenspan put, then the Bernanke put, followed by the Yellen put and now the Powell put. Also, by purchasing mortgage securities, the central bank moved beyond buying and selling Treasuries and raising and lowering short-term interest rates to aiding a specific sector, housing.