Thursday, March 19, 2009

Not everyone thinks bond buying is a good sport – especially if Govt is the buyer

When the NZ dollar soars it’s usually not because NZ has done something wildly wonderful – it’s usually because someone else has done something stupid.

Today the US govt announced plans to buy a vast quantity of bonds and to pump vast sums into the Fred ad Fannie – and the kiwi took off as all hands sold Uncle Sam.

Difficult to avoid seeing this as a market verdict on policy – and one having the advantage of not being a pundit guessing game – its a for real score….

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