The Great Rebalancing: No Asset Left Behind

(1) Working on Chapter 13 of the second edition of my Fed book. (2) A work in progress. (3) The Fed’s remarkable pivot on March 23 marks end of B-GVC, beginning of A-GVC. (4) Weekly data confirm dash for cash during March. (5) Credit spreads confirm March 23 was a major turning point on the financial front of war against the virus. (6) The Fed is the buyer of last resort for bonds, providing cash for rebalancing into stocks. (7) The Fed’s balance sheet is vaulting to new record highs. (8) ECB joins Fed and BOJ with no-asset-left-behind PEPP (Pandemic Emergency Purchase Programme). (9) BOJ doing much more of the same.