What Can I say Wednesday
If I had any motivation to write about things economic, here's what I would say in a nutshell.
-Boom Boom Bernanke said last week that state cutbacks were a possible issue for the "recovery". Well, from his lips to the Senate's ears:
$26 Billion in Aid to States to Pass Tomorrow
There, fixed it for you. Remember, the US can issue as much debt in it's own currency as it needs, the bond market funds nothing. Why this bill is not for $2600 Billion I have no idea, but I guess a slow bleed is better than a big bang. No worries, an extension should be ready by NFL opening weekend.
-Does your state have unemployed folks that are going to lose their homes? Not anymore:
Gov't OKs $600M in housing aid for 5 states
99 weeks of unemployment and a year mortgage free! No wonder everyone wants to live in the U.S. of Free.
Where's my handout? Where's my share of the redistribution pie?
-Zero Hedge wonders how this can happen:
Stocks surging; Bonds surging; Gold Surging...
But another article there reads:
And Scene: ICI Reports 13th Consecutive Week of Massive Domestic Equity Outflows As Banks Start To Panic
Money is running FROM equities and INTO bonds. The algos move the stock markets up, and hot money chases bonds higher (lower yields). What's hard?
All you really need to know about all the moral hazard, market dislocations, handouts, free rides, refusal to learn, and whatever else comes to mind can be explained by the simple graphic below (suggested by a friend of mine):
And yes, that is a rabbit with pancakes on its head. You are welcome.
Have a good night.