Here it is in simple context. The Fed has suspended the law of supply and demand until 2014. They buy all surplus Treasury bond/notes/bills depressing interest rates. Massive money supply goes into every market inflating values. How long can the Fed produce this QE funny money?
The Fed has removed risk from the bond market and replaced it with fantasy. This fiesta can not last long nor end well. Everybody has drunk the existential kool aide.
Any ideas where the economy, including unemployment, will be this Sept.-Oct.?
Bingo ! Spot On !!
Otherwise known as “The Tune Up On The Titanic”