StickWithANose

I’m a little late getting to this, but it is a gem. Yves Smith:

Any student in a basic finance course who did a simple spread comparison, failed to assign a risk premium appropriate to the borrower, and ignored the option value of these facilities would get an F.

Since we assume that someone at the Fed does understand these issues, we are left with a second line of thinking which is actually not much more favorable to the central bank, namely, that it holds the financial press and the public in contempt and figures they will buy any and every superficial and misleading explanation, so long as it has a few numbers attached. The fact that the Financial Times dignified this rubbish will only reinforce the Fed’s imperial tendencies.