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Thursday, June 04, 2009

You Can't Stop A Tsunami

... so don't even try. In the end, all your attempts will be wasted energy.
Yields on the benchmark 10-year Treasury note and Fannie Mae mortgage bonds are higher than they were before the Federal Reserve said March 18 that it would buy as much as $1.25 trillion in mortgage-backed securities to help drive down borrowing costs.

The Fed’s program, along with a plan to buy as much as $300 billion in Treasury securities, helped push rates to a record low 4.78 percent twice in April.

Treasury yields are climbing as investors anticipate a greater supply of government debt being sold to fund federal spending.
$1.2T down, infinity to go.

"With enough Lego blocks connected together," said Fed chairman Ben Bernanke, "this catastrophe could have been prevented."

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