[FF Editorial: Anyone who still believes that the FED or any other central bankers know what they are doing must be wearing blinkers or idiots. The FED and the central bank herd (mindless followers of the FED Pied Piper) first seduce the suckers (but in polite society’s language are referred to as “investors”) to put their hard earned money in risky assets to chase yields, as a result of the ZIRP policy. When sufficient suckers have been trapped, the exit doors are shut down. Just imagine when the fire alarm goes off and everyone is scrambling to get out, rushing towards the fire-escape only to find that all the exits are closed and bolted. In the result we will a “roast turkey party”! So, if you want to be a roast turkey, continue to believe in the FED and the other central bankers and put your money at risk.]
The Financial Times is not exactly a rumor mill—-so its recent headline amounts to a thunderbolt:
“Fed Looks At Exit Fees On Bond Funds”
And so the shoes begin to fall. Owing to the Fed’s brutal financial repression since December 2008 (i.e. zero yield on short-term funds), there has been massive scramble for yield that has driven trillions into corporate and high yield bond funds.
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