Note that the US economy had begun its recovery in October 2011. Stage 1 of the recovery came from exports. Countries that benefited were not the natural exporters like China and Japan but rather anyone exporting to emerging markets, since they were the only importers with any ability to pay. Now even this game appears

Happy Friday

Hedge funds are now more useful than ever now that many investors have given up on them.

For the US, UK and Germany, a small window remains to raise long term debt. Take the UK for example. They need to issue 30 year debt in quantities sufficient to remove refinancing risk for the next 5 yrs, and then cut tax rates.

I’d like to understand the causality between lower MBS yields and unemployment. I’m sure there is a correlation, but I’m not sure that the dependence is so high.