by Wolf Richter
We got another one today, warning about all the right things. And then they do the opposite.
Here is what gets me. It happened again today. These Fed guys and gals are wandering about the land – armed with solid data – flailing their arms to warn about corporate debt that is at historic highs, and about credit spreads between certain types of junk-bond yields and investment-grade yields that are the tightest in history, where investors no longer effectively distinguish between higher and lower risk, and about commercial real estate with “cap rates” that have hit historic lows, indicating out-of-whack prices.