Wednesday, May 10, 2017

Goldman is in charge of the treasury market

Goldman Asks If Yellen Has Lost Control Of The Market, Warns Of Fed "Policy Shock"

Despite two rate hikes and indications of impending balance sheet runoff, financial conditions have continued to ease over the past six months.
That is you, Mr, Goldman. You are the one  making sure the senate covers interest payments. The financial conditions require you to fix the ten year rate, otherwise the senate goes bust.'
The more fundamental issue is that the central bank cannot issue currency, it has no bit error function. The Fed is all abut a time based insurance program, no effort to match savings and loans as its balance sheet indicates.  So, easing is always the same,  keeping the senate from defaults when defaults would be quite natural, after all the 50 year time based insurance program will be far from accurate.

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