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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: Skeeter Bug who wrote (103745)6/24/2009 7:23:22 AM
From: TH4 Recommendations  Read Replies (1) of 110194
 
SB,

<if Bernanke puts the breaks on his treasury purchases, do interest rates go up?>

The easier question is if Bernanke keeps printing money to buy bonds do rates go down? And the answer is no. I've been saying for months that I was very interested in watching the actual result from this idiotic policy, and the market has proven this simply does not work. It does not work because the impact to the dollar negates any return on the bond purchase.

If Ben wants rates down, then the market is sacrificed by allowing the reality of our deflation to drive money back into treasuries.

So your conclusion is the same as mine. And I think we have reached that point.

We have reached the point where Bernanke does not gain by buying more bonds with printed money. Ben can believe whatever of his nonsense bullshit he wants, but it won't change the reality that the bond market does not care what he believes.

GT
TH
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