The New Normal

While the 'new normal' might have originally been invoked to describe a more subdued economic growth path as the economy absorbs financial deleveraging.

I was thinking perhaps a better use of the phrase 'new normal' is in describing the manner with which we have grown accustomed to extraordinary monetary measures. What five years ago would have been unfathomable, now passes without a blink.

The extent to which the Fed and the ECB have expanded their balance sheets and reduced their own lending standards is staggering.

And yet, in the new normal, it is, how should we say, 'normal'.