QE2

Over the weekend, it became known that PIMCO, the world's largest bond fund, and turned the tables and was short U.S. government debt, after holding U.S. Treasuries for so long. It was recently made known that PIMCO had sold out of all it's U.S. government-related holdings, but this is a stark...

During an interview with CNBC this morning, Alan Greenspan spoke about QE2, foreclosures and the economic recovery. “I am assuming that the foreclosures will begin to slow down,” he said. “But the problem we've had is such a large proportion of sales are distressed sales.” Greenspan also said that...

US February PMI index (61.4) continues showing strong economic growth in the US in February. New order, employment, and price paid are all up in February. This is not a surprise. So far, every regional economic activity indicator has shown significant increase in February. The Chicago Purchasing...

We are in the third act of the theater of the absurd. In the first act, Chairman Bernanke created QE1, through which the Fed bought $1.75 trillion of assets from banks—mostly trashy mortgage backed securities, but also a lot of government debt. This filled banks with a trillion dollars of excess...