The Financial Times is not exactly a rumor mill—-so its recent headline amounts to a thunderbolt: “Fed Looks At Exit Fees On Bond Funds” And so the shoes begin to fall. Owing to the Fed’s brutal financial repression since December 2008 (i.e. zero yield on short-term funds), there has been massive scramble for yield that has driven trillions into corporate and high yield bond funds. What this means is that liquid funds which would have normally been parked in bank deposits or money market funds have been artificially displaced. That is,  they have been chased by the dictates of the monetary politburo into far … Continue reading The Fed Has Plans for Your Bond Fund