Until now, the Fed has sterilized additions to the money supply by selling Treasuries as it added reserves.
The actions of the last 6 weeks show how near we are to a major meltdown in the system.
The US Treasury bond market remained steady in spite of the potential inflation from the flood of money in the system.
Let’s not panic now.
Thanks for the post!
Wilbur Ross on Cavuto just said he is buying Municipal Bonds for the 6% tax free yield.
He is SHELTERING AGAINST OBAMA.
He said Obama would bring increases taxes and this manks tax free bonds more attractive.
Think about this folks, obama increases taxes to essentially FORCE people to put their cash with the government.
NO PRODUCTIVITY.
NO INVESTIMENT
NO INOVATION.
NOTHING.
Just paying to keep the beast of goverment tributed.
THIS CRASH IS THE OBAMA CRASH!
Obama is not just stupid, Obama is HARVARD stupid.
AIG has near exhaused it’s 100 billion, plus, Paulson kiss. AIG could end up, alone, eating that money.
Won’t this cash infusion eventually lead to inflation and higher interest rates?