Unmeasurable Virus Risks Permeate Everything
The Fed’s muscle and fresh government stimulus have buttressed markets. But the amount of ungaugable risk in the system remains high.
The same problem that has kept the markets off-balance all year long nags on: When will the virus be over?
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James Carville, Bill Clinton’s political svengali, is God’s gift to financial commentators. His winning slogan: “It’s the economy, stupid.” His wish for reincarnation: to come back as the bond market, because the bond market “can intimidate anybody.” Those two comments, on their own, have provided the spine to countless financial columns over the last quarter century. These days, however, they may need a little revision. Carville might prefer to come back as the Federal Reserve, because the central bank has now intimidated even the bond market into mute acceptance. And the new catchword: “It’s the virus, stupid.”