For months, even before the end of QE2, analysts and prognosticators have been saying the Fed will have to do another QE and another, endlessly. These folks were surprised when it didn’t come last month, and predicted confidently that it would come this month especially because Bernanke extended the September meeting to two days. I [...]
This article is a more fleshed out version of the one I wrote on August 18. It was written for our newspaper, the Montecito Journal. I hope you enjoy it.
The Fed’s War Against Savers
The official policy of this country is to “maintain a strong dollar.” In fact though, nothing could be further from [...]
Yesterday’s Treasury auction of $35 billion of two-year notes was a solid success, as the bid-to-cover ratio was right at normal, 3.44, and drove the yield down to 12.5 basis points, the lowest yield ever recorded in history.
Here is what it looks like:
At that yield, assuming you believe the governments price inflation numbers [...]
PIMCO will purchase Treasuries on recession risk
(Reuters) – PIMCO’s Bill Gross, who runs the world’s largest bond fund, said on Friday the only way he would reverse his “short” position on U.S. government-related bonds and purchase Treasuries again is if the United States heads into another recession.
Since the news on April 11 [...]