Treasurys Pile Up With Dealers - WSJ.com
It would seem interesting to tie this situation into the situation going on in peripheral European countries like Portugal and Spain where the banks are saddled with too much government paper.
Is this a sign that the real economy has had enough of government borrowing; or, was something left out of the article in terms of crowding out private borrowing?
Clearly Bill Gross was onto something a while back when he talked about how these low rates discourage banks from lending to private borrowers - i.e. the low rates don't adequately compensate for the risks of lending to the given borrower.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment