"The Fed has maintained interest rates at or near zero for four years running
even though the financial system has been relatively stable since 2009. "
the fed went to ZIRP as part of the anti contraction campaign
it stayed at ZIRP because despite financial market recovery
job markets are still zonked out
so let the easy credit flow ...into free reserves
"The Fed's actions have kept Treasury bond prices high (while keeping the government's interest costs low), but the fundamentals do not support the high valuations, given the fiscal mess we are in."
what ?
the next 5 years of deficits will drive up rates dramatically ?
" Sooner or later, the bond bubble will burst "
maybe it'll be
just a slow goodby sheila
history suggests that route is plausible
as well as fed doable
but i'm not the only one to call Clio to the stand...
" History has shown .."
".. a structurally weak economy combined with a fiscally irresponsible government propped up by accommodative central-bank lending .."
gra something nailed to the floor ..
"..always ends badly."
poor Clio she can be forced to testify to anything .....in absentia
that always suggests we are hearing argument not fact
now comes the jeremiah shutter
" Absent a change in policies,
a toxic brew of volatile interest rates and uncontrollable inflation
could define our future"
a toxic brew of volatile interest rates
and uncontrollable inflation !!!!!!!!
a nice compact suticase full of shit sheila
