“Ask Robert” November 2010

“Ask Robert” November 2010

Strange things are happening in the bond market. As the Fed begins their historic, massive, and reckless bond buying program, bonds yields are going up...not down. Seems now that there's a guaranteed buyer, everyone is cashing in.

While, I'm certainly not hoping for the Fed's plan to backfire and for the economy to suffer, there are plenty of people who think that will happen. I don't have a crystal ball. So, I don't know what will happen for sure. But we do have history, and by every historical case, printing money doesn't work.

But who knows, maybe this time it will. Maybe the Fed will miraculously change the tide of economic history. Maybe the almighty dollar will prevail. Maybe. But I'm not betting on it.

Next week, I'm looking forward to digging deeper into the Fed's Quantitative Easing program and why the world—including some of our own politicians—is rebuffing their efforts. But this week we've come to another installment of "Ask Robert?"

As always, please post your questions below. We'll pick one question from the bunch, and I'll post my answer later this week.

Original publish date: November 16, 2010