Over the weekend, we discussed the little-known secret that in today’s post-QE world, the Fed actually doesn’t control rates… it just rubber-stamps what the market is already doing.
And the market is tightening all on its own – whether we like it or not.
You can see what’s happening in the market from the chart of the 13 week T-bill, which has risen relentlessly, both before and since the Fed raised the Fed Funds target in March. Rates are rising because as the Fed removes cash from the system, the demand for short term paper can’t keep pace with the supply.
As the Fed drains cash and the Treasury pounds the market with supply, the situation spirals increasingly out of control.
We may be looking at a rather large market “accident” as soon as July.
Here’s what’s going on – and what it means for you.
The post Watch The 13-Week T-Bill – And Get Ready for A “Market Accident” in July appeared first on Lee Adler’s Sure Money.
The post Watch The 13-Week T-Bill – And Get Ready for A “Market Accident” in July was originally published at The Wall Street Examiner. Follow the money!