Today's commercial paper yield curve reminds me of an old folk song called "There's a Hole in My Bucket." There's a hole in my yield curve today; just look at the gap in the red line for financial paper. The graph is from the Fed's website www.federalreserve.gov.
4 comments:
Deborah, you need to beat the WSJ financial reporters to the punch and write a book deconstructing the how and why of this so called "credit crisis." I have my own side bets about what is truly at the root of this diminution of American financial prominence.
As an aside, I'm amazed how prominantly tied our financial system is to the value of mortgages, more proof that the U.S. is no longer the dominant economic power house.
Further, it's very interesting how Morgan and Citi have escaped relatively unscathed. Good portfolios management or good timing?
Dear Kumbu,
I am helping a friend write that book. Thanks for your support for this project.
I think that the US is still the boss of the financial markets; we are just going through a serious bad patch. We will prevail because of our Capitalism, work ethic and basically good government. (I just hope that the candidate who favors free global trade wins the election - not the gentleman who wants to impose trade restrictions.)
Thanks for writing,
Deb
Free vs Fair (trade), two words, a massive philosophical difference. Given the binary choice, we have the same hope.
Still, I can't help but wonder what the Representative from Texas 14th district might have achieved.
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