Federal Reserve flow of funds table F.107 (Rest of the World) showed that foreign investors — that for many years had been the primary support of US bond and commercial paper markets — were conspicuously absent. […]

For the last twenty-five years, the Fed flow of funds accounts reveal two dominant forces supporting US stock and bond markets. Stocks: Stocks have been driven upwards by corporate executives and mutual fund managers who have backed stock-buybacks/executive option schemes to mutual advantage. As described in the article, “The quarter-century buyback […]

The rest of the world holds $16.9 trillion in dollar financial assets, and China owns a large, although indeterminate, portion of these assets. With Nancy Pelosi, Chris Dodd, Barney Frank, and Harry Reed having taken over monetary policy from a weak, inexperienced President Obama and with the Democrat-controlled Congress freely enacting highly inflationary spending programs — […]