Thursday, May 28, 2009

The Treasury Bubble is bursting

That is how I read the results of Treasury auctins. Tax receipts are down 38%, the Treasury now pays an inflation premium on debt, investors in the Treasury hedge are pulling out their deposits.

We now have to go back to this Congress for a reallocation, or wait until the next election. Smart money is parking their funds away from Congress until we can see clearly a change in direction from Congress.

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