Prices of Treasury coupon securities plummeted today as overwhelming supply overwhelmed the markets ...All of this is happening before Obama, Pelosi and Reid try to borrow another $2T.
The House passed its version of a fiscal stimulus package yesterday and the reality is that when the Senate pases its version it will compel the need for even more money.
Likewise, the “bad bank” solution to the financial crisis as the Treasury will need massive amounts of money to finance those purchases ...
The salient point is that supply has overwhelmed the buyers and it will probably require higher yields to ultimately clear the market.
Saturday, January 31, 2009
Hurricane a-Comin'!
Dig this from the excellent Across the Curve blog:
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1 comment:
I feel ill. we have absolutely no power over any of this. It's like a Greek myth with Zeus and the other gods hurling thunderbolts in the sky above reality. When the lightning finally strikes, the forest will burn. Only this time they've set the whole world on fire.
captcha: hankyant
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