For what it’s worth, and because I’m tired of getting into political debates where people create their own facts: You can write this down and see how correct I end up being in the next 5-10 years…frankly, I hope I turn out to be wrong this time. The Euro is going to continue to fall, … Read more For What It’s Worth:
The Fed has just fueled the treasury bubble even more….just like they fueled the housing bubble after the stock bubble burst They keep trying to fix the wrong problem. Instead of letting risk get priced back into the economy, they just keep trying to shift the excess risk around. They are robbing Peter to pay … Read more Fed Wearing Blinders
Bubbles are created from mass hysteria and delusion, not greed specifically. The reason the bond bubble is going to be so bad stems from the fact that the purchase is falsely assumed to be a safe, non-speculative position to take. The government can’t subsidize risk out of the markets very long, and interest rates are … Read more Bond Bubble?
Banks bidding for deposits to gain liquidity is just one more blatant sign from the markets that the FED needs to let interest rates go up to provide liquidity. Without the higher interest rates for bank deposits, people are just shifting funds into a treasury bubble. Its no wonder the treasury needs to provide funds … Read more Banks now bidding to buy other banks to gain their deposits
How many more signs in the open market do people need to see to realize equilibrium interest rates need to rise to free up the markets? Right now, the low rates are just shifting the excess risk leverage into treasuries creating a pricing bubble there, driving the yields down, and escalating the spread between rates. … Read more Bank Liquidity
These people don’t even know what they are trying to fix. The free markets just let the larger commercial and investment banks price default risks into the market with the lower valuations in the purchase prices. Banks and investors have both increased their leverage in the markets substantially in the past 12 odd years thinking … Read more Pointless Bailout Anyway