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David Zervos, head of Global Fixed Income from Jefferies Securities, compares how goverment intervention in the Treasury market is somewhat similar to the government's endorsement and Wall Street's packaging of the junk Maimi ocndo market as high quality loans. When is the Fed's actions of buying long U.S. Treasuries going to catch up with what is really happening in the financial markets, government spending and the real economy.

Jefferies strategist David Zervos is back again with new recommendations about how the U.S. could step in and save the global economy. This week: threaten complete disaster if EU leaders don't act right away. Akin to what he said about the matter last week: The game in Europe is as we have described many times before - the Germans want budgetary control throughout all of Europe and the rest of EMU wants Eurobonds. Its a game a chicken with the entire global financial system on the line. The US should not allow itself to become a casualty in this Euro...