I keep reading the "overnight repo" market (parking money overnight), which the FED has had to support since a crisis of confidence in the banks services, has well over a $trillion cash. I'd call that a potential inflation threat. The FED talks of slowing down its purchases of bond assets which otherwise keeps interest rates very low, and that talk leads to a small bump in interest rate demands from other bond buyers. But then I guess the FED steps back into the market...


Dan McWhirter
DannyMac