Apr

29

Sideshow, from Duncan Coker

April 29, 2010 |

As another benign FOMC day passes, the spread between Fed funds and 10 year Treasury stays at 350 basis points. I would propose that on average the spread is around 150 bp and probably where it should be now given the inflation cycle. So that extra 200 bp, multiplied times all the money market funds, demand deposits and cash, gets seamlessly and efficiently transferred to the deserving parties. While one branch of government puts on a side show, another takes care of important issues.


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