What Every Market Player Should Now Be Contemplating

Can the U.S. government finance its $1.2 trillion plus annual deficits with an entire yield curve at less than 1 percent?  

We seriously doubt it and the Fed is going to have to step-up big time with QE, non-QE, or let’s just call it for what it is, monetization.

These yields are distorted and not true market rates, and now have become Airbnb rentals driven by haven flows, the MoMo crowd and ‘bots, and a proxy for stock shorts.

Long-term investors?  Think rent control distortions.   We will be closely monitoring  the monthly auctions for real demand.

The dollar?  Yikes!


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4 Responses to What Every Market Player Should Now Be Contemplating

  1. Pingback: Trump & Co Must Abandon The Stock Market To Save It | Global Macro Monitor

  2. Pingback: Some Perspective | Global Macro Monitor

  3. Pingback: Stocks On A Long Monetary Leash | Global Macro Monitor

  4. Pingback: Ignore The Bond Market Flapdoodle | Global Macro Monitor

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