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Showing results for tags 'Give em enough rope!'.
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As global yields are bid down to 0% by unlimited central bank printing so too is volatility, since fewer and fewer market participants are able to identify a reason to trade. In the absence of volatility and swap trade activity it then becomes impossible for investment banks to generate the earnings they need to retain their fantastically expensive staff. Further evidence then that the effectiveness of unlimited QE slows exponentially and then becomes self-defeating? QE vs bank profits modeled using the logistic equation in a Lotka-Volterra type competition might be instructive.