Regime Change(s) in Financial Markets and Politics

Regime Change(s) in Financial Markets and Politics by LST 

The phrase ‘regime change’ appears apt when describing the present state of financial markets and politics…worldwide. A few considerations that come to mind:

Regime Change : Financial Markets

• The Federal Reserve / Janet Yellen would like to lead the US and the world out of the post 2008 monetary maneuvers (e.g. QE, ZIRP, NIRP, etc). The Fed’s wishes have been complicated by the BOJ, ECB, market reactions to the BOJ, ECB.. and other forces.Monetary regime change (?)
• The on-going construction and related credit bust in China remain on-going…coupled with counter-cyclical policies e.g. tax cuts, market liberalization, etc.Forced/necessary/desirable economic rebalancing, i.e. regime change (?)
• Record level of NIRP-related debt outstanding, as well as record-breaking negative interest rates. FX considerations aside,...
  

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