Hair Of The Dog That Bit You
The notion that the best cure for your hangover is to drink more of the stuff that got you drunk in the first place has been around since the time of Shakespeare. Liquidity has been getting investors and home borrowers drunk for years. Now that the party seems to be over and the headaches are setting in… what do we do for a remedy? We provide more liquidity to the system in the form of central bank injections. I think I am going to start calling this the “Hair of the Dog Fed.”

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