MI2's Global Macro Summit

September 26-29| Vail, CO

LIVE NOW! Stream Sessions Virtually!

Anatomy of a Credit Crunch

  • In 1966 inflation accelerated because of Johnson’s “Guns and Butter” policy
  • When the Fed hiked rates to fight inflation, duration mismatches caught the banks napping
  • The result was a rapid collapse in lending and serious collateral damage in real estate
  • The analogy is clear; will FOMC hubris come back to haunt them?

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