bearfund

When the Market Runs Out of Lifeguards, Will You Sink or Swim?

Marvin, think what you're saying. If we're going to pay through the nose for years and years because regulators keep screwing the pooch, what form do you think that payment is going to take? That's right: more borrowing. Those "stimulus checks" you heard about (but almost surely didn't receive)? Borrowed money. The next ones will be, too. Raising taxes will only lead to capital flight and deepening of the recession. The bottom line is that Treasury supply is huge and only going higher. The market is betting big on the dollar going higher, but wait until the Fed starts printing in earnest. I've gone on record as saying the Fed's next move will be down, and I stand by that assessment. ZIRP anyone?