To: montanajoe
It almost sounds like the took a page from the Housing Bubble Scheme book. As long as Fannie and Freddie will buy the mortgage paper, even if it is no good, the Countrywides kept writing them. Now the banks are buying the bonds because the know the Fed will buy them.
21 posted on
03/09/2011 7:37:34 PM PST by
John.Galt2012
(I'll take Liberty and you can keep the "Change"!)
To: John.Galt2012
I just don't see it that way. There are plenty of foreign buyers waiting in line for the bonds its not just banks, and as noted in the article these foreign investors are passing up far higher yields in other countries bonds to get 3% on a US 10 year note, hardly the start of a bond bubble...
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