Daily Digest - August 8
- Hunger hits Detroit's middle class (H/T Yashash)
- Peter Schiff on Health Care & Don't Put Words In My Mouth, (Video, H/T Spilldenmark)
- Max Keiser - On Criminal Banking Syndicates, Moral Hazard, (Video on page)
- Jeffrey Sachs, Columbia University, Crisis, Economic and Environmental and others (FORATV Video)
- From Calculated Risk, Google Maps does foreclosures
- TrimTabs Unemployment (Video on page)
- Bankrupt: Federal Reserve Balance Sheet Update: Week Of August 5
- The Octavia Solution (H/T DavidC, Video on page, Humor)
The main reason why central banks are generally not allowed to buy government debt in the primary market is that the central bank is supposed to buy assets at market prices (to protect its ability to re-sell them when it chooses to tighten monetary policy without depleting its capital and therefore its independence from government). Although the Fed does buy treasuries at auction, it does so only to roll over its existing holdings. So when the Fed buys a large proportion of a new treasury issue from the primary dealers very soon after the auction, it raises the question of how meaningful the auction process actually was in determining a fair market price for the bonds. And, as Chris Martenson notes, the apparently successful sale of a larger volume of treasuries to the private sector gives the impression that demand remains robust despite the massive increase in supply.
Food has long been an issue in this city without a major supermarket.
Peter Schiff on Health Care & Don't Put Words In My Mouth! (Video, H/T)
Foreign holdings of USTs and Agencies increased by $23.5 billion monthly to $2,810 billion from $2,787 billion in the prior month. This is now less than 20% of the comparable increase in Securities Held Outright by the Federal Reserve, implying foreign purchasers are starting to fall far behind in their purchases of US securities relative to the Fed's monetization rate.