When the Fed Stops the Music
Who Wants the Old Maid?
It’s the Deleveraging, Stupid!
London, Monaco, and Zurich
Last week we delved into the uncertainties that face us and that make forecasting for 2010 problematical. Will the government actually increase taxes as much as they say, with unemployment still likely to be at 10%? Or will cooler heads prevail? Would such an increase cause a recession? Will the markets anticipate the effects of such a major increase in advance? How will the mortgage market react when the Fed stops buying mortgage securities at the end of March? There are so many things in the air, and today we explore more of them, as I continue (perhaps foolishly) to try and peer into what is a very cloudy crystal ball.
….read more HERE. (Ed Note: When the Fed Stops the Music is begins after the Haiti Appeal)