Wednesday, July 9, 2014


The Fed today released the minutes of the June meeting.  Targeted for October is the end of the bond purchase program, or QE something or other.  The markets rose on the news.  Why? Well they apparently intend to use reverse repos and other such tools to manage interest rates which everyone believes will remain low at least on the short end.  How?  I have no idea having, frankly, spent the entire afternoon watching the gripping Argentina/Netherlands semi-final won by the Argies on penalty kicks.  It was much more interesting.  But I will know by tomorrow until which time you should keep the phrase "government allocation of credit" close at hand because at first blush this appears to be where we are going.  Anyway, it's the end of bond buying.  Of what else it may be the end remains to be determined.

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