{"id":51802,"date":"2020-03-16T08:36:28","date_gmt":"2020-03-16T13:36:28","guid":{"rendered":"https:\/\/olduvai.ca\/?p=51802"},"modified":"2020-03-16T08:36:30","modified_gmt":"2020-03-16T13:36:30","slug":"the-world-has-changed-what-was-our-biggest-mistake","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=51802","title":{"rendered":"“The World Has Changed” – What Was Our Biggest Mistake?"},"content":{"rendered":"\n

“The World Has Changed” – What Was Our Biggest Mistake?<\/a><\/h3>\n\n\n\n

This is going to take time.<\/strong> Sorry to have to say it, but patience will be required and undoubtedly tested. By far the best thing that central banks can do is keep the global financial and funding markets functioning and not especially worry about whether the stock market, within some reason, has a good or bad day. We need to keep our eye on the ball. Unfortunately, the reality is that, until the virus starts to visibly recede, the best we should plan for is getting by as best we can.<\/p>\n\n\n\n

The worst mistake that was made up until now was trying to pretend that it was business as usual.<\/strong><\/em><\/p>\n\n\n\n

\"\"\/<\/figure>\n\n\n\n

I was reading through my emails and IBs this morning and was really surprised how many people essentially asked whether I thought the Fed\u2018s move over the weekend would \u201csolve\u201d the problem.<\/strong> What an extraordinary example of how we have been conditioned. The Fed can\u2019t fix this. They can just help us get through it. It also was striking, how few people brought up the coordinated actions by multiple central banks. This is a global problem. The Fed isn\u2019t in this alone. To think that way, misses the whole point.<\/strong> And, not to beat a dead horse, there will have to be some action on the fiscal policy side. We\u2019ve seen that global monetary policy can be somewhat synchronized. Now we will see if the politicians can do the same.<\/p>\n\n\n\n

One thing you can be sure of is that trying to trade these markets is unlikely to be easy.<\/strong>\u00a0Equities will most likely be heavy. They should be. <\/p>\n\n\n\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

“The World Has Changed” – What Was Our Biggest Mistake? This is going to take time. Sorry to have to say it, but patience will be required and undoubtedly tested. By far the best thing that central banks can do is keep the global financial and funding markets functioning and not especially worry about whether the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[83,4609,1849,7006],"class_list":["post-51802","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bloomberg","tag-change","tag-financial-markets","tag-richard-breslow"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51802","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=51802"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51802\/revisions"}],"predecessor-version":[{"id":51803,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51802\/revisions\/51803"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=51802"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=51802"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=51802"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}