Posted on 10/26/2009 11:50:06 AM PDT by Kartographer
Treasurys fell Monday after the government kicked off a record weekly offering of $123 billion in U.S. debt.
In the first of four auctions to be held this week, the U.S. sold $7 billion worth of reopened 5-year Treasury Inflation Protected Securities, or TIPS.
(Excerpt) Read more at money.cnn.com ...
looks like that may be what caused the blink of an eye huge drop in the stock market.
How much did our government purchase from itself?
Who in their right mind would lend money to the US government? There is no way any money you lend them will ever be paid back.
How much did the Fed buy?
Never buy "inflation-protected securities" from any government body that not only issues the debt, but also serves as the official determinant of what exactly the inflation rate is.
Riding a bicycle along the edge of a cliff is perfectly fine.....
....until the day you fall off.
Very true. They have been manipulating the cost of living index since 1992. Social Security would be 75%+ higher if they had not changed the formula to include substitution, thus allowing them to “play” with the index.
What I love is the loans to the big banks. Then the fed raises the reserve requirements of which t-bills count as reserves! Kind of like kiting! Loan them money long term and require them to lend it back!
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