What do you do when flood waters threaten the dam? If you’re the Federal Reserve, you close the floodgates and let the water rise.
Metaphors have an uncanny ability to capture the essence of complex situations. Here is one dam metaphor that dist…
Tag Archive for Floodgates
Bears Chat, Best of the Forums
America: Running In The Red
by Bears Chat at The Wall Street Examiner • • 0 Comments
The nation’s unnerving descent into debt began a decade ago with a choice, not a crisis.
In January 2001, with the budget balanced and clear sailing ahead, the Congressional Budget Office forecast ever-larger annual surpluses indefinitely. The ou…
Liquidity Trader Complete, Professional Edition
Fed Hands It Out, Treasury Draws Short Straw- Professional Edition
by Lee Adler • • 0 Comments
There were two different markets this week, neither of which came as a surprise to us. On Monday and Tuesday the market was faced with settling $64 billion in new Treasury supply, with little Fed POMO the prior week to help absorb it. After that, there was no new Treasury supply, and the Fed opened…
