Apologies to Coleridge, but the money supply in the US looks likely to expand yet again. I'm not sure what sterilised QE really means. I'm an ex-bond trader and the idea of the Fed printing money and buying stacks of low quality paper from a back book that I've marked to zero would get me very excited about bonus year 2012. It's the typical arb your own bank moment where a new trader takes over a position marked at an unreasonably low level and proceeds to sell it out and print a large profit. Now normally no one would fall for this, but when management at many of the holders of these instruments has changed so much over the last 3 years no one remembers who is responsible for what. Meaning, that some kid not long out grad school is suddenly the new star trader on the floor and will need to get paid.
In the meantime I took it easy today and did an hour of upper body work at the gym. Yesterdays 70k marathon left me pretty stiff in the back and neck, so stretching and light weights were the order of the day. 20 minutes on the running machine loosened up the joints. The other good news for the day was that my new 66mm Pinarello water bottles arrived from Cicli Mattio in Italy. Grazie. I would preferred black or red, but hey these will do the job.