Author Topic: As The US "Reaches The Keynesian Endpoint"  (Read 1291 times)

Hare of Caerbannog

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As The US "Reaches The Keynesian Endpoint"
« on: April 27, 2011, 05:32:56 AM »
"Just as Charles Ponzi needed donuts to turn back a suspicious crowd of investors, the Fed needs “donuts” in order to fill the bellies of the literally millions of investors worldwide who worry about the alarmingly large U.S. budget deficit and the impact that the U.S. debt dilemma could have on their Treasury holdings...Their collective buying has created what we believe to be a profit illusion with many investors mistakenly believing they can continuously reap profits from perpetually falling bond yields and rising bond prices, just as they have had opportunity to do over the past 30 years, amid the great secular bull market for Treasuries and the bond market more generally...For many reasons, this “duration tailwind” for Treasuries can’t last, particularly because the United States has reached the Keynesian Endpoint, where the last balance sheet has been tapped."

I really had hoped this would hold off for a couple more years. I didn't expect to see this until around 2015.

Offline Herbalpagan

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Re: As The US "Reaches The Keynesian Endpoint"
« Reply #1 on: April 27, 2011, 06:21:38 AM »
I'm surprised that it hasn't happened already!

Offline LdMorgan

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Re: As The US "Reaches The Keynesian Endpoint"
« Reply #2 on: April 30, 2011, 11:36:17 AM »
A good firing squad should have a long leadup and a brief moment of extreme immediacy.