The central bank's QE program has effectively turned the US Treasury market into a Ponzi market', says Scott Minerd, global CIO at Guggenheim Partners

The central bank's QE program has effectively turned the US Treasury market into a Ponzi market', says Scott Minerd, global CIO at Guggenheim Partners. Minerd's argument is that the Fed's bond-purchasing program has introduced false confidence into the market as investors believe Treasury investments will continue to increase in price. Just like a Ponzi scheme, the value of Treasury assets has become disconnected from its underlying value. The longer the expansionary policy, the more volatility-inducing pressure it will build. He expects stock and bond markets to be in for a rough ride over the next six months. (VIEW LINK)


Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.