M dub

Fiscal Responsibility: Obama Takes the Reins

Seems to me the only way o'bama can slash the deficit is by

1) including the cost of the war where it was not before, thereby using a somewhat inflated starting deficit number and 2) taking credit for the reduction of expenses as we withdraw from iraq.

that spending was going to go down despite who the president was. he is only being coy by calling this responsible to include it in the deficit, as he only wants personal credit for it.

Now, it is technically correct that war spending is part of the deficit, however, after all this pork money down the hole stimulus all he will be able to show is that he reduced the war spending.

it is his only hope for showing how he will not be the president that brought back socialistic welfare and big government. good thing people are stupid.

the stock market isn't so dumb, though, so don't be surprised as we take a dive.

The Dollar vs. Treasuries Dichotomy

What we are seeing my friend is FED and/or Treas buying the long end of the curve.

"Hey, we're the government, we can shorten our duration and massively increase our refinancing risk for global depression scenario...why not, if the banks can go bust why can't we join the party?"

Well, its the only trick left in their book and now its gone....