Treasury Archive

Proposals for the Banking System, Treasury, Fed, and FDIC (draft)

Proposals for the Banking System, Treasury, Fed, and FDIC (draft) ...Read More

Assessing the Fed under Chairman Bernanke

[Skip to the end] “Worldly wisdom teaches that it is better for reputation to fail conventionally than to succeed unconventionally.” Keynes, Chapter 12, The General Theory of Employment, Interest, and Money The Fed has failed, but failed conventionally, and is therefore being praised for what it has done. The Fed has a ...Read More

China wanting to buy TIPS

[Skip to the end] This is another blunder by the Obama administration due to not understanding the monetary system. We don’t need China or any other investor to ‘buy the debt’ yet we think we do and think they are in a position to ‘demand’ anything. Issuing/selling CPI indexed govt debt is ...Read More

TIPS 5 year 5 years fwd

This used to be one of the Fed’s major concerns as they are steeped in inflation expectations theory. It could still signal a need to keep a modestly positive ‘real rate’ though the large ‘output gap’ is telling them otherwise. History says they’ll put most of the weight on the output gap, ...Read More

The stupidity of this statement: “Huge supply coming…”

[Skip to the end] Mike Norman Economics The stupidity of this comment: “Bond market facing huge supply.” Week after week after week, you hear these TV commentators or other “know-nothing” economists and analysts talk about the “huge supply” of new Treasuries that is coming and how that is going to cause interest ...Read More

Homeowners Plan

[Skip to the end] Glad they’re finally coming around! Would have been nice to have offered this two years ago before a few million people had no choice but to leave and take down the neighborhood with them. >    >   (email exchange) >    >   Hi Warren, >    >   Treasury plan to allow foreclosed homeowners to ...Read More

Nonsense from Wells Fargo

[Skip to the end] Please send this on to Eugenio Aleman at Wells Fargo Thinking The Unthinkable: The Treasury Black Swan, And The LIBOR-UST Inversion Posted by Tyler Durden >   The below piece is a good analysis of a hypothetical Treasury/Dollar black swan >   event, courtesy of Eugenio Aleman from, surprisngly, Wells Fargo. Eugenio ...Read More

Tresury credit default swaps soar

[Skip to the end] >    >   On Wed, Nov 26, 2008 at 11:31 PM, Scott wrote: >    >   FYI. More insanity. Love it when the guy asks where the money comes >   from. What are your thoughts on selling CDS on Tsy’s? >    I’d sell it! I also suggested the Fed sell it. They seemed ...Read More

Non-TARP Fiscal Balance

[Skip to the end] Automatic stabilizers at work. Deficit still far too low at $500 billion, which is about 3.5% of GDP. Non TARP Fiscal Balance (Released EST) Non TARP Fiscal Balance () [top] ...Read More

In over their heads

[Skip to the end] The Fed and Treasury decided ‘the problem’ was the LIBOR/Fed funds spread and threw everything they had at it. What finally did the trick was the Fed’s unlimited swap lines with the MOF, BOJ, ECB, and SNB. Unfortunately that turned a technical problem into a fundamental problem, as ...Read More