Pulling The Punchbowl

There is an odd bit of history playing out in real time that many who are not connected to the inner workings of the financial machine might not appreciate. As the US Federal Reserve begins to reduce its more than $4 billion balance sheet heft the European Central Bank will attempt to do the same. Will the coordinated withdrawal of central bank quantitative stimulus that many say is supporting markets end up being a coordinated ordeal as some analysts predict?  To understand the unwind modeling in part, consider how the unprecedented balance sheet behemoth was built and then take a…