Bubbles Popping

(1) A novel variation on QE proposed at Jackson Hole. (2) Learning by doing at the Fed. (3) A year ago, Bernanke said QE lowered bond yields by as much as they just rose on QE taper talk. (4) Banks, foreign investors, and bond funds all selling bonds. (5) QE pumped air into bond and EM bubbles. (6) Since last FOMC meeting, bond yield up 22 basis points. (7) Rising mortgage rates hit housing. (8) FOMC minutes suggest tiny tapering in September and lower threshold for jobless rate (maybe). (9) “The Butler” (+).