Thursday, March 19, 2009

TREASURY BUYING BONDS

what are these guys thinking. they are in deficit and will have to finance with bond issuance but are buying bonds to manipulate the prices up and yields down? how stupid do they think the market is? buying new issue securitizations of new packages of mortgages, car loans, etc until the market functions on its own is ok. if you want to manipulate interest rate you need to be a little more subtle

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