Monday, October 26, 2009
Reserves soar to a new high! Buy Treasuries!!
The "Treasury bears" like Jim Rogers and others who don't understand that the money to buy Treasuries comes from gov't spending itself, have been constantly calling for a top in the Treasury market. Just last week there was more of the same.
Do yourself a favor and take their money--it'll be easy pickin's--because the recent rise in gov't spending and securities purchases by the Fed have caused reserves in the banking system to shoot past the $1 trillion mark!
There is NO WAY bonds are putting in a top with this humongous new reserve addition.