With all the bailouts - not to mention the junk that the fed is holding - the fed is running out of money. So they are going to issue more TBills to bridge the gap.
``The Treasury Department announced today the initiation of a temporary Supplementary Financing Program at the request of the Federal Reserve,'' the department said in a statement today. ``The program will consist of a series of Treasury bills, apart from Treasury's current borrowing program.''
The new bill program ``will provide cash for use in the Federal Reserve initiatives,'' the Treasury said.
I guess they are preparing for more bailouts. Don't be surprised if the interest rates go up because of more issues. I am surprised they have already not gone up. With the treasury selling more TBills, there is going to be more supply. There better be more demand or else....
BTW you don't hear anyone in the MSM talking about a housing bottom anymore. Ofcouse you still had trolls saying Fannie and Freddie bailout marked a bottom. NOT!
I heard another analyst on Bloomberg today. Who sounded more honest than most. He was saying that we are deleveraging from a 40-year credit expansion. This is going to take at least one year to fix the problem. Now granted he did say "At least". But given it's a 40 year expansion, I doubt it's going to be resolved in a year. I would say at least two-three years before we can even think about resoving these issues.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aQ58hpS0fRH8&refer=home
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