I know it’s bad form to express sympathy for the people running the world’s central banks. But come on, they’re human beings in an impossible spot with no idea how to escape. The pain they feel is both intense and legitimate, and we should respond with at least a bit of empathy.
Just kidding. It’s schadenfreude all the way down.
The Fed, in particular, has painted itself into a very tight corner with its never-ending threats to raise interest rates while the rest of the world is still cutting. Millions of words have been written about its reasons for behaving this way and the difficulties of the road it has chosen. But for now, it’s enough to note that Yellen et al is still at it, dropping hints that come October rates are really, seriously going up because the US is a healthy, well-run country whose borrowers should borrow more and whose voters should reward incumbent politicians with four more years!
But the rest of the world is not cooperating. Deutsche Bank (DB ), of course, has everyone spooked and speculating not about whether it needs saving but how and when this will happen. Here’s one creative take from MarketWatch:
