Bond Outlook March 26th

The same big three basic causes, an economy built on financial deficits, falling house prices and excess leverage remain unaddressed by all the manoeuvring of the Fed. Very clever manoeuvring it is, and necessary to avoid collapse, but only time and belt tightening can resolve the big three.

It is now possible to outline the unfolding of the big three’s impacts in a number of areas:

• this is the end of a nearly free financial market and the beginning of tighter regulations.