Late to the Avalanche

Oh it's too easy to live in a cold sweat
Just sitting dripping in pools below
You can wipe your face
Kill the pain
But the fever won't go, no, no
--Genesis

Right on cue from our earlier post, it seems the Pomboy girl is also experiencing some deja vu back to 2007. Back then, while the Fed was cutting rates at stock market highs, the central bank's actions were not preemptive in the least. Instead, the Fed was unable to get ahead of the subsequent avalanche of widening credit spreads.

Anyone else getting deja vu to summer 2007? As then, the stock market is rallying hard on the prospect of rate cuts but the corp credit market is not allayed.With a record amt of corp debt -of record low quality-rolling in record sum, rate cuts are once again WAY too late. pic.twitter.com/BbeAlZYhy9

— steph pomboy (@spomboy) July 11, 2019

Now, we have record debt, much of it low (read: junk) quality, getting ready to roll in record quantities.

Is the Fed once again late to the avalanche, as Steph suggests?