Monday, April 23, 2007

M-1 and M-2 rose last week. Perhaps this is why the high-yield/ten-year spread narrowed...more cash makes it easier to hold junk bonds.

6 comments:

Anonymous said...

$34bn in Feds temp open mkt ops today!

Deborah said...

Tom, Amazing, isn't it! Why do you think they are pouring money at the system like it was the end of a century and all computers expected to crash!?! Deb

Anonymous said...

does this inverted yield curve have some relationship with falling us dollar and how can profit from it.

majid

Anonymous said...

Deb, seems crazy doesn't it when no serious market event has happened (yet). My guess is that Wednesdays $34bn was because GDP on Friday won't be so hot and they are trying to get an early buffer in or could be an approaching panic on the $ which is having a peek over the edge of the cliff. But what do I know.

Anonymous said...

Not much Tom. Deb

Deborah said...

Yes, there is a relationship between the inverted curve and the falling dollar. Inverted curve forecasts slower economy or recession. The Fed prints money to stimulate economy and make our exports cheaper for foreignors to buy.

Buy large US firms that export.