The roach motel (you can check in but you can’t check out) that is General Motors continues to suck in government cash and UAW officials say that the US will provide “massive” (their word) additional financial assistance to keep the company out of liquidation.
The market has become blase over the notion of unlimited bailout funds. Stocks are holding gains, up 2.5% and the dollar is firming.
The strong 2-year note auction today shows that there remains demand for US assets but investors prefer short-dated paper for fear inflation could erupt down the road.