By Fresbee, goto the link above for full article (worth reading)
I like this quote:
The situation does seem to indicate the first signs of stress and desperation at the FED and if the panic spreads, it could be Lehman all over again except this time it will be 100 times more powerful and catastrophic. It is a blessing in disguise that the common man and media does not understand bond market mechanics to great detail else the last auction could have been recipe for some hard questions from the government. The fact that stocks RALLIED on this news tells you how disconnected stocks are from reality. The Debt Spiral has started and the next few auctions will tell us whether it is accelerating.
As Neil Ferguson quotes in his book “The Ascent of Money”, bond market holds the key to world economics. Rest of the markets are all secondary and derived. It is getting eerily lonely and close to annihilation for the FED. How long it can stretch before its ultimate death is anyone’s guess but the fact they have been able to manage this long is a commendation to their genius manipulation.
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