Saturday, August 22, 2009

$109 Billion in Treasuies to be Issued in the Week Ahead

It just doesn't stop.

The Treasury has announced plans to sell $109 billion of two-, five- and seven-year notes next week, equal to the record for that combination of maturities. At some point, the market in bonds just breaks, or banks start lending out against the reserves the Fed is putting into the system--or both. It isn't happening yet, but at some point we are in for another system wide break down, with major inflationary repercussions.

1 comment:

  1. Can I say "sweet merciful crap"? Maybe I should just cry.