“The Fed Has Failed”: A Disturbing New Warning From Bank Of America

• “The Fed Has Failed”: A Disturbing New Warning From Bank Of America
  by Tyler Durden, www.zerohedge.com  
  First Deutsche Bank, then Citi, and now Bank of America. Following Wednesday’s disastrous FOMC statement and Janet Yellen press conference, we predicted that it is only a matter of time before we get a return of the “Policy Failure” narrative.
  …
  Sure enough, here is BofA’s Michael Hartnett not only validating this forecast just days later, but also laying out the framework for a disturbing new outlook, one which looks at a world in which central banks have lost the “war against deflation”, and what will happen once Quantitative Failure spreads from Europe and Japan to the US. From BofA’s Michael Harnett:
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  From an absolute return perspective, as opposed to a relative return perspective, US equity & global credit prices have been stronger than the above fundamentals imply. This is due to the Mountain of Cash (i.e. bearish sentiment) & the fact that every interest rate in the world has been plunging toward zero. Global government bonds are annualizing 23% YTD total returns, the highest in 30 years (Chart 5, top of post). And currently, $9.7tn of global bonds are yielding <0%.
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  read more.

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