Comments on: More signs of liquidity withdrawal, now from the U.S. Treasury http://www.creditwritedowns.com/2009/09/more-signs-of-liquidity-withdrawal-now-from-the-u-s-treasury.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: doctorx http://www.creditwritedowns.com/2009/09/more-signs-of-liquidity-withdrawal-now-from-the-u-s-treasury.html#comment-57078 doctorx Fri, 11 Sep 2009 04:11:00 +0000 http://www.creditwritedowns.com/2009/09/more-signs-of-liquidity-withdrawal-now-from-the-u-s-treasury.html#comment-57078 Ed- The 2 yr T-note is down about 30bps in the past month. My first rxn is that indicates a significant increase in risk aversion/decrease in demand for credit. Have you any comments on how that ties in, if at all, to withdrawal of liquidity? Ed-

The 2 yr T-note is down about 30bps in the past month. My first rxn is that indicates a significant increase in risk aversion/decrease in demand for credit.

Have you any comments on how that ties in, if at all, to withdrawal of liquidity?

]]> By: Anonymous http://www.creditwritedowns.com/2009/09/more-signs-of-liquidity-withdrawal-now-from-the-u-s-treasury.html#comment-57072 Anonymous Thu, 10 Sep 2009 20:13:00 +0000 http://www.creditwritedowns.com/2009/09/more-signs-of-liquidity-withdrawal-now-from-the-u-s-treasury.html#comment-57072 I'm a little skeptical. I highly doubt they will remove the crutches this soon. This is an administration bent on continuing the bubble boom years, with little regard for the principals of fiscal and monetary responsibility. Bernanke laughed when he said something along the lines of "I hope no one thinks now that letting a bank fail is a good idea". They are paranoid about repeating the so called 'mistakes' of the 1930s during which they believe they withdrew too early. With the country so on edge over this crisis, the last thing they want to do is risk a downleg as a result of sopping up liquidty prematurely. The people will simply not tolerate it. They would rather risk hyperinflation than a collapse of the system. Just my opinion. I’m a little skeptical. I highly doubt they will remove the crutches this soon. This is an administration bent on continuing the bubble boom years, with little regard for the principals of fiscal and monetary responsibility. Bernanke laughed when he said something along the lines of “I hope no one thinks now that letting a bank fail is a good idea”. They are paranoid about repeating the so called ‘mistakes’ of the 1930s during which they believe they withdrew too early. With the country so on edge over this crisis, the last thing they want to do is risk a downleg as a result of sopping up liquidty prematurely. The people will simply not tolerate it. They would rather risk hyperinflation than a collapse of the system. Just my opinion.

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