This reminds me of looking at a pasture and seeing dark green patches in the field that were once cow flops.
Brown Manure, Not Green Shoots
"In the stress tests, the average unemployment rate next year was assumed to be 10.3% in the most adverse scenario. We'll be already at 10.3% by the fall or the winter of this year, and certainly well above that and close to 11% at some point next year."
. . .
"Also, concerns about unsustainable budget deficits are high and are going to remain high, with growth anemic and unemployment rising. These deficits are already pushing long-term interest rates higher as investors worry about medium- to long-term stability. If these budget deficits are going to continue to be monetized, eventually, toward the end of next year, you are going to have a sharp increase in expected inflation--after three years of deflationary pressures--that's going to push interest rates even higher".
1 comments:
More like Bull Shoots.
If someone would just fix the deflation issue.
RATE FUTURES REPORT:Signs Of Deflation Lift Treasury Futures
RATE FUTURES REPORT:Signs Of Deflation Lift Treasury Futures
CHICAGO (Dow Jones)--Long-end Treasury futures mounted a big rally Wednesday as falling commodity prices swept away lingering fears of inflation and fueled fresh economic concerns.
Crude oil led commodities lower as prices on the New York Mercantile Exchange slipped below $61 a barrel, a deflationary signal that helped long-end Treasury futures overcome renewed supply issues as Obama administration officials floated the idea of a second stimulus package.
There were signals too that the Federal Reserve would welcome further economic stimulus, with Chicago Fed President Charles Evans saying a second package "would be helpful."
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