Insiderman

Government Telegraphs Future Inflation

The Fed doesn't want us to know what the real balance sheet number is. This could be the best thing ever if Keynesian economics finally loses its luster.

Rising Treasury Yields Could Mean It's Time to Short Them

Although Treasuries represent the "risk-free" asset, they still reflect inflation fears in an increasing yield. With $4 trillion sitting in money market, the Fed will need to provide a lot of liquidity to unwind this. That, and a $1.8 trillion budget deficit will definitely cause a policy bind if they want to hold down interest rates.

The other real trick will be to prevent widening spreads when no one wants to be a debt holder after the government crams down GM and Chrysler senior obligations.

It's been bad enough to be an equity holder; now this.