The 2017 edition of the Jackson Hole symposium is officially over, and while central bankers disappointed markets by not providing any insight into their views on monetary policy (assuming they have any) they instead focused on market stability, and patted themselves on the back for creating a fake “risk-free environment” (which they justify by the record low VIX, even if ignoring the record high cost of crash insurance).
In an amusing twist, Janet Yellen’s speech started off by highlighting that one of the key features of the $14 trillion in post-crisis central bank asset purchases, which has resulted in central banks purchases accounting for 40% of global GDP, is pervasive risk amnesia:
A decade has passed since the beginnings of a global financial crisis that resulted in the most severe financial panic and largest contraction in economic activity in the United States since the Great Depression. Already, for some, memories of this experience may be fading–memories of just how costly the financial crisis was and of why certain steps were taken in response.
This post was published at Zero Hedge on Aug 27, 2017.
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