By Scott Rubin – The announcement of QE3 is wearisome for many reasons. When the Federal Reserve and Treasury started down the path of radical market intervention, many enlightened investors opined that the intervention may go on into perpetuity. By all accounts, this prognostication has been borne out thus far.
Asset prices have been artificially manipulated and do not reflect long-term economic reality. Consider for example, the U.S. Treasury market. The yield on the 10-year note is currently around 1.84 percent. Is this an accurate reflection of the credit-worthiness and fiscal situation of the U.S. government? Does it accurately reflect inflation expectations? more> http://tinyurl.com/95fr4tc
- Western financial system reduced to shell-games and ‘alchemy’ (sgtreport.com)
- Top Fed policymakers differ on QE3′s effectiveness, Ann Saphir, Reuters