As for the markets I think todays Bond Auction and the subsequent sell off speaks volumes. Traders I am talking to are looking for the sell off to continue and really it should be no surprise. China a major buyer of our debt is in a verbal battle with the US over its currency value and I do not see how we change their mind. They will move when they want to, as they always do. Overall I see a steepening curve with limited growth, little employment gains and limited inflation (at least I hope).

Once again a very informative site.