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The Fed owns about half or even a majority of Treasurys across several different maturities...

  • Wednesday, September 19, 2012, 9:11 AM ET
    The Fed owns about half or even a majority of Treasurys across several different maturities along the yield curve. If we toss in holdings by China, Japan, and banks borrowing for free from the Fed, are there any real-money investors still holding U.S. government debt?
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This news story has 5 comments:

  • Good question, no one knows how much private money is involved. The tradegy is that treasuries were formerly an excellent source of information for investors and businesses. Not any more. We are driving blind or at least impaired. If we run over a few things, or off the road don't be surprised. The desire to control seems to be overpowering. The race to debase means the disease is worldwide. Own gold.
    19 Sep 2012, 09:50 AM Reply Like
  • I agree, whidbey. The most fundamental economic values are being profoundly corrupted by the money and power men.
    19 Sep 2012, 10:39 AM Reply Like
  • Interesting.
    19 Sep 2012, 11:15 AM Reply Like
  • Fed intervention in the long end of the T-bond curve has created a situation where these instruments are dangerous for investors. These instruments offer little yield, and are by Fed design exorbitantly expensive right now. Because of convexity, even a small upward movement in interest rates can cause the price of these long duration bonds to crater. Extremely high risk (i.e., no so-called "safe haven"!), and no yield. Buyers beware.
    19 Sep 2012, 11:49 AM Reply Like
  • Apart from the fact that the $US is a reference currency, which makes the world economic system look like a vulcano, it also is a national currency, which makes the US economy look like a powder store.
    If the Fed already owns 50% of the Treasurys, I wonder what percentage is needed before the yields can't be prevented from rising.
    19 Sep 2012, 02:57 PM Reply Like
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