Fed buys $2.5 billion of long-term U.S. government debt at auction

March 30, 2009 by · Leave a Comment
Filed under: Economic News 

Well between Obama giving the GM CEO the boot and the Federal Reserve having to purchasing more of our debt, the market is down sharply (over 4% at the time of this writing).  It is becoming clear that we had a “bear-market rally” last week and these rosy predictions were much too early and now the reality of what is happening is becoming clear.  

Who really thinks once the economy turns around, the Fed is actually going to retract all the credit they have let, not I?  We should know that if that happens, the economy will collapse again so that tells me we are going to see a heavy bout of inflation that has the possibility to destroy the currency.   I advise everyone to proceed with caution and trust your gut, it will mostly likely give you the most honest assessment of the situation.

News (Reuters):

U.S. government debt prices rose on Monday as heavy stock market losses and the threatened bankruptcy of two major U.S. automakers whetted investors’ appetite for safe-haven government debt.

Key Wall Street stock indexes were down more than 3 percent as the Obama administration forced out General Motors Corp’s CEO, pushed Chrysler LLC toward a merger and threatened bankruptcy for both.

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