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.

Its Friday and its been a long week…

Painkillers are addictive. People follow the path of least resistance. Principles are always compromised. The prudent are the few. And often made to pay.

Finally Bernanke has tired of announcing successive bouts of quantitative easing, he’s just announced that the Fed will be buying assets until the labour market picks up.