Can we all start worrying a bit so everyone can relax?
WSJ Fedwatcher Jon Hilsenrath is out with his latest missive:
Federal Reserve officials, looking out at mostly calm financial markets, are starting to wonder whether tranquility itself is something to worry about.
Hilsenrath specifically writes about junk bond issuance. An analyst at BCA puts it to the Fed almost perfectly:
“It is a problem of their own making. They can’t have it both ways,” said Martin Barnes, chief economist at BCA Research, an investment-advisory firm. “If they want to sustain zero interest rates and push up asset prices, how can they expect to have that with no excesses and no risk taking?”
