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The Treaury has not been issuing much in the way of long term debt so yes, within that category, the Fed has been their significant buyer. I think the Treasury should also be moving more US debt to longer term instruments to capture lower debt costs for farther into the future.
Couple intersting charts I found:
Domestic Investors – Mutual Funds
The next big domestic buyer that comes to mind is the mutual fund community with more than $12.4 trillion in assets ($9.9 trillion in long-term funds — stocks, bonds and hybrid funds — and $2.5 trillion in money market mutual funds). The two charts below show the net purchases of Treasuries for money market mutual funds and long-term mutual funds. This data also comes from the Federal Reserve’s flow-of-funds report.
As the first chart shows, money market mutual funds were net sellers of Treasuries seven quarters in a row before returning with net purchases.
The second chart shows long-term mutual funds are net buyers of Treasuries. While these purchases have rebounded in recent quarters, neither the long-term mutual funds nor the money market funds are large players in the Treasury market when compared to foreigners or the Federal Reserve
Domestic Investors – Banks
Are banks’ holdings of Treasuries closer in scale to those of the Federal Reserve or foreigners?
The first chart below shows U.S. chartered bank holdings of Treasuries have declined from $294 billion in Q1 1994 to just $29 billion in Q1 2012. The second chart shows a long-term look at the percentage of banks’ assets invested in Treasuries. Back in the 1950s it was near 40%. Today it is less than 0.3%. Simply put, banks do not buy Treasuries.
Last edited by Zippyjuan; 11-01-2012 at 03:35 PM.
History is important. But what really happened does not matter that much. What really matters is what people THINK happened. - HK.
I am Zippy and I approve of this post. But you don't have to.
And now hurricane Sandy has created jobs and tons of new wealth. Rejoice!
Actually, tons of new expense to be carried by state, local govt.'s , insurane co.'s to be passed to the tax payer.... net loss ...
"Boom" or "Bubble"?
"You cannot solve these problems with war." - Ron Paul
Good to see all the negative Nancy viewpoints in this thread. I consider it a contrarian indicator - things are getting better.
If you really think things are getting better you're not looking at it correctly...
I don't care what bubble they inflate or how much better they try to make things seem.
This is an undeniable truth.
The US Debt is past 16 Trillion, US Total Debt is 58Trillion, the unfunded Liabilities are in the nature of 250trillion, student loan debt OUTWEIGHS personal credit card debt, none of this is in a reverse trend. It's all getting much worse, and the reason that there's an illusion of prosperity is because of the massive inflation that's going on to create it.
Nothing is better, nothing is close to better, if you ride up the bubble and assume it's peaches and cream you're crazy. Whatever ride up we get temporarily will be offset in the future by an even greater crash than 2008.
Things might get better but it's an illusion. This country is flat out broke and the people are carrying the entire burden they just haven't been slammed with it yet.
It's just an opinion... man...
I can't tell if the OP is meant to be taken sarcastically or not. I think I'll move on.
War Is A Racket ... after all. The Hospital Industry thrives too. That is not a good thing unless you are one who profits from the maiming and killing and don't care about your fellow humans.
Monster asset bubble that has faced no correction, accompanied by the expected minor fluctuations.
I , expect unemployment to go up , end of Jan.
Max Keiser is calling the meltdown for early Q2 of 2013.