VROOM! You hear that sound? That is the noise the US Treasury makes as it sucks up the world's liquidity in the global bond and fixed income markets. As I said before in earlier articles, there can be only one quantitative easing beast in the world - and that is the USA. Other issuers, no matter how "safe" their secured status, are forced to raise yields in order to entice borrowers to pick up the slack. Let alone even try native QE programs.
The following article covers the German bond market (THE perceived bastion of Eurozone stability). If Germany is having trouble raising funds then what does that bode for less stable countries such as the Mediterranean belt of Greece, Italy, and Spain? More bearishness is in the cards.
http://www.ft.com/cms/s/0/
16c7ceba-dcbe-11dd-a2a9-000077b07658.html?nclick_check=1
Thursday, January 8, 2009
Subscribe to:
Post Comments (Atom)
Blog Archive
-
▼
2009
(472)
-
▼
January
(15)
- The Debts of the Lenders: China Speaks On Davos an...
- The Debts of the Lenders: The Irony of the West
- The Debts of the Spenders: EU Hawkish On Inflation
- The Debts of the Spenders: It's the Clearinghouse ...
- The Debts of the Spenders: The Death of Graham Ble...
- The Debts of the Spenders: Watch the UK and Italy ...
- The Debts of the Spenders: The Bad Bank Idea
- The Debts of the Spenders: The Euro - Diverging Bo...
- The Debts of the Spenders: The Euro - An Inherentl...
- The Debts of the Spenders: Has the Bond Bubble Bu...
- The Debts of the Spenders: Duration Of Bernanke's ...
- The Debts of the Lenders: Forex And Risk Appetite
- The Debts of the Spenders: G7 Floods Bond Markets ...
- The Debts of the Spenders: Commercial Real Estate ...
- The Debts of a Nation: Looking Forward Into 2009
-
▼
January
(15)
0 comments:
Post a Comment