Foreign central banks aren't going to finance much of the 2009 US fiscal deficit; their reserves aren't growing any more (the q4 2008 COFER data). Brad Setser, Follow the Money.
and, on that note...
I've got friends in low places. Contrary Investor.
but there's a proposal to reduce the risk of capital flight away from the greenback...
Asia is the victim if the bond bubble bursts. Yu Qiao, FT.
Home prices: low, but still no bargain. WSJ.
home prices relative to average incomes back to 2003 levels, still above level of last house price boom in 1989.
Comparison: OECD and "more averse" scenarios. Calculated Risk.
The economic impact of increased U.S. savings. Charles Atkins and Susan Lund, McKinsey Institute.
Is China 2009 = U.S. 1929? Paul Kedrosky, Infectious Greed.
The Fed's new balance sheet. James Hamilton, Econbrowser.
key quote:
To my knowledge, every hyperinflation in history has had two key ingredients: (1) budget deficits that could not be resolved politically, and (2) a central bank that assumed the obligations that the fiscal authority could not.Sell stocks, buy corporate bonds (II). David Merkel, Aleph blog.
Blogging from inside AIG. Clusterstock.
Geithner's nuclear option should scare bejesus out of bondholders. Henry Blodget, Clusterstock.
Roubini makes more positive noises about the economy. Henry Blodget, Clusterstock.
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