Just as happened after WW II and for many years, the U.S. banking system is ramping up its holdings of Treasurys. Bloomberg reports:
U.S. banks bought more government and related debt in the first two months of 2012 than they did in all of last year, an endorsement of Federal Reserve Chairman Ben S. Bernanke’s [...]
I saw a quote from Professor Robert Higgs on regime uncertainty today and it struck a chord because there were two stories (see below) that exemplify its meaning. Higgs defines regime uncertainty as follows:
… As I understand regime uncertainty, it has to do with widespread inability to form confident expectations about future private property rights in [...]
You may wipe your brow and say to yourself, “Well, we avoided the Big One this time, let’s get back to normal.” After all, we were threatened with the specter of the Great Depression early into the crisis, at least according to Ben Bernanke, and you might think that we dodged that bullet. You would be wrong.