Money For Nothing Chicks For Free

Markets strong this AM with CITI bailout news and ahead of Obama's announcements regarding his economic team at mid day today. Last week's action saw a confluence of potentially unprecedented governmental future funding dilemmas as the realization of Japan like economic conditions of the 80's and 90's were becoming evident. Realization that overnight rates will probably go to zero after the first of the year with three month T bill rates reaching their lowest level, just above zero, last week. The world does not really want US assets unless they are treasuries. The Fed is in effect flooding the world with dollars and will do so aggressively for the foreseeable future as it aims to liquidfy the transactional financial pipelines. A world where negative interest rates requires you to pay to save and get paid to borrow, especially if you have a supply of treasures, is to say the least a bit upside down.