[kcar]

This is getting quite serious. The Bank of Canada kept rates unchanged, the Bank of England is indicating the same, the Aussies are considering rate hikes, the European Central Bank is holding the line, but the Fed reduces rates 50 BPS and indicates more of the same, e.g., they’re more worried about a slump than inflation of the money supply. This, while Japan and China are reducing Treasury holdings, and the Treasury is looking at covering government’s suddenly expanding deficit with increased issues at yields foreign investors already indicated lackluster interest in in August. And Alan Greenspan is proving to be the Jimmy Carter of former Fed chairmen. What a perfect storm.

[fatez]

You mean all our debt; federal, state, local, corporate and private is finally catching up to us?

Hmmm. Time to increase spending like handing out $5,000 bonds to every child. Good thing our President gave out prescription drugs to our seniors at no cost to anybody...

[ichabod1]

Well, we wouldn’t want any “irrational exuberance”, now would we.

[mamelukesabre]

So, what are you saying? Are we doomed?

[Professional]

So why is US govt, trading at sub 5% coupons?

Anyone????

[bruinbirdman]

"., they’re more worried about a slump than inflation of the money supply"

I don't hear the Dems complaining. Are they behind the destruction of the dollar? And they are silently cheering? Or are they in cahoots with the Fed and love a bad economy, recession?

yitbos

[bruinbirdman]

"Treasury is looking at covering government’s suddenly expanding deficit"

I think we just started a new fiscal year after deficits came in much below projections for 2007.

yitbos

PS - they have hardly started on this years budget. We get GW for two more.