But first things first. Dubai World is not nearly large, leveraged, or systemically important as either Bear Stearns or Lehman Brothers when both those firms failed. For those reasons, it’s unlikely that the failure of Dubai World (and we’re not saying it will fail) would, by itself, cause a global deleveraging.
November 30th, 2009 | Dan Denning | 18 comments | ContinuedAll Posts Tagged With: "U.S. Treasury Bond"
Feds Begin Buying U.S. Treasuries Bonds
Do you remember how it works, dear reader? When you buy a U.S. Treasury bond, you pay for it with real money – or, at least as real as dollars get. Money changes hands. No net increase in the money supply. But when the Fed buys a Treasury bond it creates the money to buy it…and thus the money supply increases.
March 26th, 2009 | Bill Bonner | 2 comments | Continued
Federal Reserve to Buy $300 Billion In U.S. Treasury Bonds
What we have now-with crystal clear clarity-is asset inflation. Bonds and shares will benefit first, if benefit is the right word. If the up-tick rule is reinstated and mark-to-market accounting is suspended, you could see a pretty impressive rally in stocks over the coming weeks and months.
March 19th, 2009 | Dan Denning | 7 comments | Continued
