Elliott Management: Central Banks Are Consuming "The Kool-Aid-laced Muffins That They Have Concocted And Baked"

Following the financial crisis there was an odd economic environment, as an eerie calm over once bustling shopping malls and main streets ushered in a period persistently sluggish economic growth. Like a nagging cold that was more of an annoyance than debilitating, the Fed tried pumping in alternative medicine to enliven the markets. They threw together eight years of acronyms such as QE, ZIRP and NIRP – all describing a never before tested economic theory. Now the central banks find themselves at a crossroads, the Elliott Management 4th quarter letter to investors observes. It is not just monetary policy, but…