Massive Debt spending: re Far More Serious 'Stress Test' For Financial Markets
Market pump based on the massive debt spending is just another big trap similar as the R.E. bubble/crash.
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That test comes in the form of the US government selling a massive amount of new Treasuries this week. Specifically, the government sold two-year notes on Tuesday, and will sell five-year notes on Wednesday and seven-year paper on Thursday
The pass/fail will be determined by how well these auctions are received – in other words, how well investors digest all the pending supply.
As you know issuing debt is a cornerstone of the Obama plan to fund the massive stimulus – which is intended to drive the U.S. out of recession. But some pundits have questioned whether there’s that much demand out there for Treasuries.
URL: http://www.cnbc.com/id/30944136/
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