Friday, May 29, 2009

Here It Comes...... Inflation Alert!

Bond Vigilantes Confront Obama as Housing Falters (Update3)
By Liz Capo McCormick and Daniel Kruger
May 29 (Bloomberg) -- They’re back.

What bond investors dread is accelerating inflation after the government and Fed agreed to lend, spend or commit $12.8 trillion to thaw frozen credit markets and snap the longest U.S. economic slump since the 1930s. The central bank also pledged to buy as much as $300 billion of Treasuries and $1.25 trillion of bonds backed by home loans.

At moment we may be ok, but it is coming.... Are you ready....?

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