12/18 wtf is happening to my money market yield?
http://finance.yahoo.com/q/bc?s=^IRX&t=my
\_ spend spend spend! Only *YOU* can save the economy by
spending.
\_ I'm actually increasing my spending to some
extent over usual.
\_ Bargains to be had?
\_ No, I just feel sorry for everyone. It's
tough times and I have cash and don't need
credit to buy shit.
\_ I am spending more too, but that is mostly because
I keep seeing great deals on things like single malt
scotch, that I can't pass up.
\_ The Fed is printing money. The dollar is worthless, hence the
0& coupon auction recently. We are in for some serious
inflation eventually.
\_ The Fed is only "printing money" (through their new loan facilities)
in markets that are desperate for liquidity. This money supply is
probably preventing _deflation_ right now (which is much worse),
and can be quickly soaked up again to keep inflation under control.
\_ The Fed is only "printing money" (through their new loan
facilities) in markets that are desperate for liquidity. This
money supply is probably preventing _deflation_ right now (which
is much worse), and can be quickly soaked up again to keep
inflation under control.
\_ We hope. I don't think the Fed can inject $1T into the
economy and not cause inflation.
\_ This is because practically everyone in the world (including op)
is buying safe T-bills, driving down yields. Demand is outstripping
supply, which raises prices and depresses yield. Nothing to do with
the money supply.
is buying safe T-bills, driving down yields. The Fed is only
"printing money" (through their new loan facilities) in markets that
are desperate for liquidity. This money supply is probably preventing
_deflation_ right now (which is much worse), and can be quickly soaked
up again to keep inflation under control.
\_ What you say is all true except for the last sentence. |