When Obama took office, the banks, bondholders, and creditors were on the hook for the agency MBS. The FED owned none. Now you and I are on the hook for $1.25T of agency MBS. The buying power of my few remaining dollars are evaporating.
I don't want to fire Robin Hood come November, I want the SOB hung.
Well guess what, if you buy treasuries you are a loan officer for yourself, and the U.S. government is that clueless person looking for a loan from you.
When you ask them for the financials, they look at you with sincere and clueless eyes and say, well we want to buy the society of our dreams and it only costs $75 trillion and we have an income of about $2 trillion.
What would you do? Would you laugh? Would you fall off of your chair? Maybe - but you should probably say: "No Way!"
Picture yourself as an innocent investor. You are bombarded 24/7 that the dollar is doomed and US treasuries are trash. Interest rates are going higher and the Fed is debasing the currency through their market activities. Government spending is out of control and CONgress and the president is incompetent.
Now please choose the year you are in:
A-1937 B-1974 C-1987 D-2001 E-2008 F-Now
A-E, the bankstas drew you into riskier assets, dumped them on you and you lost you behind, But this time don't worry--Bill Gross and Warren Buffett are your friendly bankstas and its different :). They got your back along with Benron and the boyz. And if they can't help, its China to the rescue--they are a tower of virtue and have never printed a yuan and have plenty of room in their ghost cities if you need a pad.