Looking back, everything seems clearer and sharply focused. Looking forward, it seldom has the same clarity. With central-bank policies for a about half a decade, it was pretty clear — just keep shoveling more money out there and drive debt prices to extreme levels.
The consequences were clear in some places and murkier in others. Debt pushers would see their currencies devalue and a general rise in most financial assets — at least for a while — until the next country came along and did the same. Corporations, even countries, moved their risk curve out farther and farther as the debt-laden policies forced decisions that otherwise would have never occurred. Heck, "if the money is free, then why not use it" was the attitude. Read more
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