jswede

What Latest Fed Move Means for ETFs

sorry Mr Yu - meant to "+" ya, but I hit "-" by mistake


On Mar 18 05:29 PM Stephen Yu wrote:

> With this latest move, the FED is signaling that there are not enough
> buyers for US Treasuries. At the beginning of this crisis, it was
> hard to find buyers of "toxic" assets" like MBS and CDS. Now, even
> US Treasuries have trouble finding buyers and the FED has to step
> in as buy-of-last-resort! Does it mean that Treasuries are now in
> the toxic asset category? If people do not trust US Treasuries, they
> do not trust the US. If they do not trust the US, they don't trust
> the dollar. And when the FED purchases Treasuries, it is printing
> money. This cannot be good for the dollar as it is getting debased.