In the terrific 1992 film Glengarry Glen Ross, Al Pacino’s Ricky Roma character says, “What you’re hired for, is to help us … does that seem clear to you?” The central banks may not have understood the memo’s directive. These institutions, from the Federal Reserve to the Bank of Japan (BOJ), are keeping the global economy intact and helping hedge funds by using the old-fashioned tools of glue and gum. The world recently witnessed how much monetary policy can inflict damage on the financial markets, proving that they are certainly not the smartest men and women on the planet. Instead, they are flying by the seat of their pants and putting their index finger in the wind to determine their next chess, er, checkers move.
A Week for the Central Banks
By now, armchair experts have heard about the Japanese yen carry trade. Investors will borrow in…
