Courtesy of Lee Adler of the Wall Street Examiner
The Treasury has dumped a gargantuan $145 billion in net new supply on the market over the past two weeks, and the markets have simply laughed in the Treasury’s general direction. I find that simply amazing. It smells like mania. I can only wonder how high stocks would have gone without having to slog through the quicksand of that much new supply on the Treasury side. It’s even more shocking that Treasuries did not sell off materially under that onslaught. I suspect that massive cash outflows from emerging markets in turmoil are flooding US markets. Financial stress elsewhere in the world always accrues to the benefit of US markets. In times of trouble, they remain the Last Ponzi Game Standing.
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