2010-08-07 — prudentbear.com
``With Treasury, Agency and MBS prices melting up (yields in melt down), key markets enjoy extraordinary, albeit destabilizing, liquidity abundance. Understandably, market participants dismiss talk of U.S. structural debt issues. Many will justify the move on fundamental grounds – “It’s deflation, stupid!†Ironically, collapsing yields, the sinking dollar, surging commodities, recovering global risk markets and the onslaught of global liquidity create a backdrop conducive to future inflation surprises. ''
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tvsterling at 01:43 2010-08-09 said:
I just don't see QE2 happening. Any attempt would surely bring out the Tea Party in force & most of the rest of the political spectrum with them. QE2 would arguably put the US into Sovereign Default which wouldn't do anybody any good. The Democrats aren't stupid enough to go there now & if the Republicans make gains their hands will be tied. Permalinkadd a comment | go to forum thread
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