[quote=deadzone][quote=an][quote=deadzone]The market will no longer be fake, if and when the Fed gets out of it and there is true price discovery (aka free markets).[/quote]
So, never. If the market is always fake, then wouldn’t that just be the real market?[/quote]
What’s your point? The MBS market was not “fake” prior to 2009. So we certainly could return to free market eventually. But obviously our current economy is completely reliant on this Fed money printing/monetary expansion. So if Fed pulls back too quickly, the entire financial system would implode.[/quote]
My point is, the Fed has always been in the market of controlling the market. So, by your definition, the market has always been and always will be fake.
Since it always been and always will be fake, there’s probably 0% chance that it will stop being fake.
