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  • Wall Street Breakfast: Must-Know News [View article]
    The market is pricing Greek debt at what it's actually worth, ditto for Portugese, Irish, and other bankrupt nations' debts. If the Fed had not been monetising US debt in various hidden ways, the markets would have priced US debt at what it's truly worth. Indeed, when the Fed buys GSE debt from the Chinese at face value in return for the Chinese buying treasuries at face value, this is tantamount to the Chinese buying treasuries at 50-75 cents on the dollar, the value of the junk the Fed buys from them to get them to buy treasuries.

    The governments in the Western countries are eager to buy, on behalf of their taxpayers, assets (such as Greek bonds) at prices that greatly exceed their market value. This is a breach of their fiduciary rsponsibility to their taxpayers. I sincerely hope that their constituents, perhaps in Germany, will put an end to this irresponsible charade.
    Apr 28 07:45 AM | 10 Likes Like |Link to Comment
  • Wall Street Breakfast: Must-Know News [View article]
    ".....the research suggests the Fed should use unconventional policies to create the equivalent of a minus 5 percent interest rate."

    I thought they already did.
    Apr 27 08:53 AM | 4 Likes Like |Link to Comment
  • Preview from Europe: Market Rally Was Running on Empty [View article]
    Reality does not support the bullish mood we have been seeing. Keep your seatbelts fastened!
    Dec 10 08:19 AM | Likes Like |Link to Comment
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