At the beginning of the year, it seemed almost unfathomable to those in the West that the world would change as drastically as it did at the end of the first quarter.
At the end of last week, David Hay outlined his case that the Fed should – and would – buy enormous amounts of corporate bonds and that the US Treasury might resurrect TARP (also known as the Troubled Asset Relief Program) to stabilize the economy. Evidently Fed-head Jerome Powell is a close follower of Evergreen’s newsletter!
One of the most poignant global pandemics in recent memory has been the unexpected outbreak of the coronavirus in China’s Hubei province. The spread and impact of the disease even changed this week’s plan to release the next edition of Bubble 3.0, instead favoring some pertinent commentary from Gavekal’s Arthur Kroeber on the “Wuhan Flu”.
It is said there are “no atheists in foxholes”. When things get desperate, we all like to imagine a better outcome on the other side of whatever nightmare is being endured. It is also the case that when facing challenges, a natural reflex is to cling to beliefs installed in us at a young age.
When writing Q&A On The Hong Kong Dollar Peg back in May, there was no inkling that trust between the police and much of Hong Kong’s population would fully break down. Today, there is a parallel with the 1992 riots in Los Angles…