Global Macro Trends in Eight Charts: The Next Crisis Will Be in Currency [View article]
The Fed can continue to post collateral with the Treasury to continue its above said activities. The amount of income received by AIG, Fannie and Freddie each day makes the press hum. It is easy street for the Fed when you dont have to mark liabilities. I dont expect anything to change for a long time. We can expect asset bubbles, but this is going to be a multi-year biggie. I dont see how the Central Bank can get out of this one, since they have lost control of short rates! It is suicide to allow long rates to "tick-up" and no way a depression acedemic will ever risk it! I feel like a crew member of the pinta or santa maria. Its a sin to expect dollar carry to grease the economy. I feel for younger pensioners.
Five Charts to Rule Them All: A Telling Week for Bonds [View article]
Control of AIG, fannie and freddie provides the income to continue this madness. It is as if the Fed has both the tap and the drain working full time. Draining money from these three private(?) income producers allows Timmy and Lassie to keep a straight face whilst debasing the dollar. It would be a better question to ask "whats the music" than, do we have enough chairs? Suspending "mark to market" means "nobody will hit the floor when the tune stops" or did anybody ever trust the Central bank in the first place? This situation reminds me of the third frame in a wild wild west episode!
Global Macro Trends in Eight Charts: The Next Crisis Will Be in Currency [View article]
Global Macro Trends in Eight Charts: The Next Crisis Will Be in Currency [View article]
Five Charts to Rule Them All: A Telling Week for Bonds [View article]