Back on September 25th the Wall Street Journal published an article about nervous investors who were buying low yield, short term U.S. Treasury Bills as safe securities. [Demand for Short-Term Treasury Debt Puts a Crimp in World-Wide Supply, wsj, 9/25/08]I remembered that because I just read another article about nervous investors buying government securities at low yields, under 1 percent. This time it is the Washington Post writing about the low yield U.S. Treasury bonds and declaring that "it’s terrible news for the economy, which relies on...
Friday, 19 December 2008
Wednesday, 3 December 2008
Credit Deployment
Posted on 10:24 by Unknown
A recent headline from Wednesday, November 26th in the Washington Post reads “U.S. Moves to Revive Consumer Spending.” The first line of the article tells readers “The government said yesterday that it will deploy up to $800 billion to make it cheaper for Americans to get a home mortgage, take out a car loan or borrow money through a credit card . . .” The word “deploy” has never been a financial term in my memory. Troops get deployed, but money is typically saved or spent. Dollars need to be spent rather than deployed to revive the economy so...
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