The U.S. Treasury, Fed, and stock market explained in one sentence

Granted, it's a longish sentence, but I think Tyler Durden captures it all:
The wealth transfer continues: another $118 Billion in coupon issuance is coming up, the bulk of which will be bought up by Primary Dealers, repoed back to the Fed, and the resulting cash used to ramp stocks to new all time highs, generating short-term profits for the banks and another year of record bonuses as future US generations will experience the kinds of riots caused by debt mismanagement as Greece does today.

And if you're feeling especially doomish, please check out Michael Panzner's "Scenes from a V-shaped recovery."

1 comment:

B-Daddy said...

Sold a little stock today. Getting nervous about inflation. I am using the money for home improvements and other useful stuff. I just think it's a good time to be reducing my exposure to both the market and the dollar.

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