New Money Review podcast

New Money Review podcast

A $5trn addiction problem

January 29, 2020

In this episode of the New Money Review podcast, Michael Howell, CEO of  CrossBorder Capital, a London-based advisory and fund management firm, explains why wholesale money markets are now addicted to the liquidity pumped into the system by central banks.

There is little prospect of central banks reversing course, says Howell, and we should look forward to further bouts of quantitative easing (QE) around the globe.

And, far from its previous promises to unwind the QE it embarked on after the 2008 crisis, the Fed has just overseen the biggest liquidity surge ever, CrossBorder Capital calculates.

In the podcast:

  • Why banks are no longer the primary creators of money
  • The critical role of the repo market
  • Who the main lenders are in the financial system
  • Why central banks need to backstop the system
  • The main risks in the current system
  • Which assets to watch out for as a sign that the liquidity boom may end