It is clear that the Fed is planning to do everything to turn our bad mood around. Perhaps the question in bankers minds right now is which is more secure: US dollars (cash) issued by the Fed (at zero percent). Or debt issued by the Fed (bonds) at zero percent?
This one has my head spinning a bit.... personally if a bank is going to give me a loan and never call it, then isn't that as good as cash?
Tuesday Outlook: Commodities, Emerging Markets [View article]
Perhaps the next round of THE WAVE is happening today?
;-)
Thanks again,
GNE
goodnewseconomist.com
Sensing a Market Turning Point [View article]
This one has my head spinning a bit.... personally if a bank is going to give me a loan and never call it, then isn't that as good as cash?
I have written a bit of "good news" on that topic at
mast-economy.blogspot....
Seems there are some legal implications on issuing debt for cash (and I'm sure the politicians are scratching their head too.)
And if the banks will issue me notes (or cash) with no call on the loan. Why not buy some stocks? I will be getting no return anywhere else?!
Someone please enlighten me here.
Thanks,
The Good News Economist
mast-economy.blogspot....