Could the Fed Actually be Right?, Best of the Bond Market for 4/5/2012


Tweet and article by @izakaminska

Could the Fed Actually be Right? Our Take:  In a world where everyone and their mother is criticizing the Fed and predicting massive inflation in our near future, its nice to at least hear the other side of the argument.  The article and the academic paper it cites make the argument that cutting back on spending is exactly the wrong medicine for our current environment and central banks should be doing exactly what the Fed has done, helping the government borrow and spend by monetizing its debt.  For the full explanation read the article its a good one.

Tweet and Article by @SIFMA

Putting Investors Best Interests First  – Our Take:  Yesterday SIFMA which is the securities industry’s trade group came out with a blistering attack on InvestmentNews and blogger Michael Kitces.  The debate is over creating a new set of rules for brokers on what their responsibilities are to their clients.  According to their blog “InvestmentNews ran an excerpted blog post today from an analyst that not only distorts our position; it misrepresents key facts in this debate.”  You can read the Investment News article here and Michael Kitces original article here. We are currently researching this story and will be writing more on it in the near future.  We do find it interesting however anytime a trade group that is paid by the industry claims to be on the side of the client.

Tweet by @BNels22  Article by

Should Muni Bonds Pay to Demolish Buildings? – Our Take: As the article mentions this was a story broken by Bond Buyer’s Jennifer DePaul and the Tax Policy Center has done a good job of summing up the two sides of the argument.  If this weren’t so sad it would be funny as the article puts it here:

“Still, tax-exempt mortgage bonds for private housing have been so ubiquitous that I can’t help but wonder how many of those now-vacant homes were subsidized with tax-exempt dollars in the first place.  What a deal. First taxpayers pay to build them. Then we pay to flatten them. Then…. Well, you know what will come next”.

Perhaps a better question is would it have been better to just let people stay in their houses instead of evicting them and having to pay to tear them down?

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