Value Investing World

Friday, June 3, 2011

GR-NEAM Reflections: June 2011 - First Bubble, R.I.P. Next, Step Forward

Thanks to Matt for passing this along.

The contractionary undertow from household delevering and banking shrinkage continues, which the Federal Reserve is trying to offset by buying government bonds. As is often the case in government behavior, they are having an effect opposite that which they intend. Instead of reviving housing and jobs, they are implicitly funding financial speculation.

Joe at 6/03/2011
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