Then about 7 weeks ago, the FCBs not only slowed their purchase rate of Treasuries and Agencies, they began selling outright, and have continued to do so at unprecedented levels.
"Unless the FCBs step up to the plate much more than they have in the past couple of weeks, either the Treasury market will collapse, or the stock market rally will fizzle, or both. We’re not there yet." Lee Adler
In addition to the unknown factors impacting the European “solution”, next week the Federal Reserve will have their regular FOMC meeting and statement.
Even if Europe fixes their mess and China does whatever it is China does to paint their numbers for another few years, it will only serve to swing the spotlight back on this dinosaur of a Nation that is little more than a shell of its former self.
