…the remaining market participants believe that central banks control markets today. On the date it is recognized the Fed has lost control, yields across the curve – and on corporates, junk, municipals, and stocks – will be adrift, without their bearded anchor.
Frederick Sheehan is the co-author of Greenspan’s Bubbles: The Age of Ignorance at the Federal Reserve.
His new book, Panderer for Power: The True Story of How Alan Greenspan Enriched Wall Street and Left a Legacy of Recession, was published by McGraw-Hill in November 2009. He was Director of Asset Allocation Services at John Hancock Financial Services in Boston. In this capacity, he set investment policy and asset allocation for institutional pension plans.