My call in December that long-term Treasuries were caught up in the “Biggest bubble of all” is looking right on target. The bonds simply can’t get out of their way. Long bond futures are down about 1 16/32 as I write, while 10-year Treasury Note yields have shot up by more than 10 basis points to 3.65%. Guess printing, borrowing, and spending money like a drunken sailor isn’t the best strategy in the world, eh? Or as I said earlier, you’re doing a heck of a job Brownie … I mean, Bernanke.
Bonds massacred again
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Mike-
You need to change your saying… it is offensive to drunken sailors – at least they are spending there own money!
Mike, you’re right on the money.
Mike,
I believe that the recent decrement in value of gold may be due to the fact that 10 year treasury notes and 30 year bonds are paying more interest. Is it possible that some investors feel that treasuries are now a bargain and are selling gold to buy treasuries? Of course if this is the case these folks are going to be severely hurt, but how long can this effect the price of gold?
Bert Warren
Mike, I like you guys but market timing means everything especially during volatile markets. Don’t gloat about your prediction because you were almost 6 months early and it cost me lots of money.Now that your predictions are finally coming true I will have to try to make up the losses I suffered while listening to your earlier recos that while now are emerging true , were far off 6 months ago. I like you and Martin and your courage for trying to inform Americans of the financial future, but timing means everything in these markets.
“Washington Moves to Muzzle Wall Street”
No Mike, I don’t think any extra power given to the Feeral Reserve would have the required effect of helping recovery. Quite to the contrary; There is no evidence the Fed would not cotinue playing the same negative role of contributing to the economic downturn it played under Greenspan.
It appears, a move from Obama to increase the fed’s power – if it’s true – will confirm, the fox is remaining in charge of the chicken coop. The explanation? The Federal Reserve is also a very important and dangerous political instrument.