Who Will Buy the Bonds?

Mar 9, 2011 | Bonds, Market Commentary, Monetary Theory

Yo u’ll see me in the coming months talk about the bond markets, particularly as the Quantitative Easing (QE2) comes to a close this summer.

We have a huge federal deficit. We need people to buy Federal bonds to lend money to the government.

With the huge influx of money from the Fed in the past few months, foreign investors were squeezed out. Will they come back? The answer is not as simple as you’d think.

I’ll be writing more and more about this as the year goes by, particularly it’s impact on you.

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