The Financial Minority Report

We can no longer achieve economic growth by taking on debt. According to the data released today, each new dollar of debt results in a loss of 15 cents of GDP.
Source: Federal Reserve, Bureau of Economic Analysis

There continues to be amazing yield compression at the short maturity end of the Treasury Yield curve. At the same time there is a growing disinterest in the long maturity end. Today’s Treasury auction of 30 year maturities fetched a median yield of 4.42% with a whopping 40% of the allotment going off at the [...]

Yes, another method of transferring the losses in the private sector onto the Federal Government’s balance sheet and thus to all of us as taxpayers. This one is called HEMAP or Homeowner’s Emergency Mortgage Assistance Program. The money for this is being appropriated in H.R.3766 while the legal framework is part of H.R.4173, both being [...]

It appears that Wall Street/Federal Reserve lobbyists have no real desire to end Too Big To Fail. To wit, we have this from the NATION
“The sale pitch for financial-reform legislation pending in the House claims it would put an stop to “too big to fail” bailouts for the leading banks. The reality is the opposite. [...]

I’d like to point out something seemingly paradoxical in the markets this 1st day of December, 2009.
2-Year Treasuries yielding 0.66% and Gold setting a new all time high of nearly $1200.00 per ounce.
And they call this an economic recovery.
I call it an insatiable demand for safety.
Tempus Omnia Revelat.