"The Fed/Treasury Merger Is Underway": The Market Will Never Again Signal That The Government Is Spending Too Much

The big shock in last week's FOMC was not that the Fed would cut - after John Wiliams' Nov 20th speech, that was common knowledge. The shock is that the Fed launched QE Lite (aka reserve management purchases), just as we said they would simply by following the clogs in the repo plumbing,