Egan Jones defines the Fed’s quantitative easing as ‘’issuing additional currency and depressing interest rates via the purchasing of MBS...’’ Yet today the interest rate on 10-Year Treasuries rose by 6.5%.
No wonder Ben Bernanke held back from imposing QE3 for so many months. He must have surmised that there would be at least one bond-rating agency that would be honest with its clients in evaluating the U.S.’s credit-worthiness.
The fact is, the U.S. bond market is a giant, hugely overpriced tulip bulb that’s about to be bulldozed into oblivion.
Ah, but all we need to do is develop a new variety of Tulip and it’s off to the races again, right? Can’t we make Ol’ Rattler hunt one more time?