It Looks Like This Holy Fool Was Right. What Now?
Since 2020, I’ve been one of the few holy fools that put forth the thesis that aggressively raising rates into a highly levered global economy would result in another financial crisis. My sin was questioning aggressive rate hikes based on the belief that low unemployment causes inflation. In the early days,
Wall and Bay Streets met my thesis with disdain. Then the Bank of Canada paused. But now, after the events of recent weeks and the banking crisis in the U.S. and Europe, it looks like the inconvenient truths have come home to roost—again. Consensus quickly pivots with attempts to impress by going down rabbit holes and presenting the situation as a complicated maze of unforeseen events. But what happened is basic Banking 101. Let me explain.
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April Market Insights by Dr. James Thorne – It Looks Like This Holy Fool Was Right
