Monday, December 1, 2008

Ben Bernanke To Replace Steve O As New Jackass

"Although conventional interest rate policy is constrained by the fact that nominal interest rates cannot fall below zero, the second arrow in the Federal Reserve's quiver--the provision of liquidity--remains effective. Indeed, there are several means by which the Fed could influence financial conditions through the use of its balance sheet, beyond expanding our lending to financial institutions. First, the Fed could purchase longer-term Treasury or agency securities on the open market in substantial quantities. This approach might influence the yields on these securities, thus helping to spur aggregate demand."

Ben Bernanke auditions for MTV

Right, buy Treasuries because........NO ONE ELSE CAN BORROW BUT THE TREASURY BEN!!!!! They don't need your help to issue more debt. Treasuries have been trading at essentially 0% in the repo market, you can get PAID to borrow money for some Treasury issues and fail to delivers have sky rocketed. And Treasuries need another buyer........

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