Further to my new report on Detroit’s default on its municipal bonds, StockTwits put up this fascinating graphic that shows just who owns the US bond market.
Look at all the names given to these various institutions:
“Households” – private entities
“mutual funds” – which are often owned by households
“financial entities” – which are financed by households and who run the mutual funds
“Federal Reserve” – which nobody knows exactly what the hell it is or how it relates to the common man
“US government” – which is financed by households, and which guarantees that financial entities stay in business no matter what
“foreign” – which could mean anything
All of these are really interconnected.
Nobody understands the interconnections.