Reply #64: They STILL have to look for returns elsewhere, because the cash from the Bernanke put is STILL in

[BzaDem]

the economy (with no corresponding increase in the amount of bonds available outside of what the government normally produces)!

I honestly don't know how to make this any clearer. Maybe I'll try putting it this way. The reason investors had to look for returns elsewhere (as you correctly point out) is because the Fed took 600 billion in Treasuries off the market. But those Treasuries are STILL off the market today! Every single one of them. That means the 600 billion STILL needs another place to go.

You are making an elementary math error. You shouldn't be telling me about textbooks.