Comments on: No Free Lunch: Fed Buying Less at Treasury Auctions Thanks to New Facilities http://www.nakedcapitalism.com/2008/06/no-free-lunch-fed-buying-less-at.html Sun, 22 Nov 2009 22:11:10 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Tom Lindmark http://www.nakedcapitalism.com/2008/06/no-free-lunch-fed-buying-less-at.html#comment-8854 Tom Lindmark Mon, 02 Jun 2008 04:17:00 +0000 http://www.nakedcapitalism.com/2008/06/no-free-lunch-fed-buying-less-at-treasury-auctions-thanks-to-new-facilities/#comment-8854 Is this an example of the law of unintended consequences or no good deed goes unpunished or the light at the end of the tunnel is the approaching train? Is this an example of the law of unintended consequences or no good deed goes unpunished or the light at the end of the tunnel is the approaching train?

]]> By: 2IfByC http://www.nakedcapitalism.com/2008/06/no-free-lunch-fed-buying-less-at.html#comment-8852 2IfByC Mon, 02 Jun 2008 02:57:00 +0000 http://www.nakedcapitalism.com/2008/06/no-free-lunch-fed-buying-less-at-treasury-auctions-thanks-to-new-facilities/#comment-8852 So something that folks, who play the debt markets, have know for quite awhile- the FED is offsetting loans to banks/financials by draining liquidity- is finally hitting the economic maintream.<br/><br/>I await, with bated breath, the responses from the less informed who are married to the debt devaluation by "FED printing" thesis.<br/><br/>Government deficits, enabled by vendor financing, inflate the asset bubbles, and lack of vendor financing, resulting in higher cost of increasing deficits, deflate them.<br/><br/>The pile of debt remains to be defaulted or redeemed from a shrinking pool of increasingly expensive currency. So something that folks, who play the debt markets, have know for quite awhile- the FED is offsetting loans to banks/financials by draining liquidity- is finally hitting the economic maintream.

I await, with bated breath, the responses from the less informed who are married to the debt devaluation by “FED printing” thesis.

Government deficits, enabled by vendor financing, inflate the asset bubbles, and lack of vendor financing, resulting in higher cost of increasing deficits, deflate them.

The pile of debt remains to be defaulted or redeemed from a shrinking pool of increasingly expensive currency.

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