Q&A #222
@Albertletoride-hz7oj: Hi Jeff. Perry Mehrling passed away last week. What is your overall assessment of his contributions to monetary theory, finance, and economics more broadly ? @Albertletoride-hz7oj: I plotted the yield curves for several countries with sophisticated financial markets. Why are France or Japan’s yield curves so steep, while those of countries like Australia and Brazil are so flat? @gratefuldad327: Jeff, for the 40 in a 60/40: Treasuries vs IG vs high yield? With private credit contracting and collateral scarce, is HY riskier than usual right now? @jpcbrasil: hi Jeff ! I’m not sure if I’m right, but it seems that K. "Washer" intends to force deleveraging across private credit markets, banks, and so on. @jpcbrasil: Is raising interest rates the only tool at his disposal? Are there any other tools he could use? Or is his actual intention to burst the bubble and kill them all? @dubiousdandy904: I'm struggling to reconcile the discretionary signals in curves with passive mechanical flows in those markets (not mutually exclusive). But mechanical flows are beyond Wicksell's wildest nightmares. @dubiousdandy904: (continuing) We know that market participants will do whatever it takes when seeking perceived safety and liquidity, regardless of mechanical flows. @Alex.Jenkinson: Not sure how much it matters, but there does seem to be a housing crash playing out. @dubiousdandy904: Next time you collaborate with Mike Green, will you please pick his brain about market share of 'passive' flows in bond markets? Mike has discussed this in recent months and your input would be great. @jespitia88: Whats going on in real estate? China? CRE? @DullilanFurbamond: in a Post Money World, what foods would be more valueable as a a perishable currency than artifical foods?@gratefuldad327: What impact will a push toward socialism in the USA have on treasuries in short and long term?
