[Seaplaner]

Stating up front that there are many different kinds of issues called "bonds", I wonder if the following headline from 4/29 perhaps had a dampening effect...

US President Barack Obama called on Chrysler LLC bondholders to make sacrifices...

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[Reagan69]

Yep, the only thing BO has stimulated is INFLATION. Fasten your seat belts... Jimmah Carter return only on steroids. (Can you say 18% interest rate ???)

[concerned about politics]

US President Barack Obama called on Chrysler LLC bondholders to make sacrifices...

It only stands to reason that where there's sacrifice, there's someone collecting the sacrificial offerings. Where there's service, there is someone being served. The man who speaks to you of sacrifice is speaking of slaves and masters, and intends to be the master. -- Ayn Rand

[krogers58]

Stating up front that there are many different kinds of issues called "bonds", I wonder if the following headline from 4/29 perhaps had a dampening effect...

US President Barack Obama called on Chrysler LLC bondholders to make sacrifices...

================================================ Absolutely my thoughts, as well. When the government acts in such an openly hostile way towards investors, they do look elsewhere to safely invest their money. In addition to a backdoor attempt to circumvent the usual bankruptcy protections afforded to secured investors, it also has an amazingly chilling effect on investment.

I'd also add, that the Chinese simply aren't going to show up at these auctions, for reasons that should be obvious to the average investor. Namely that we have publicly announced we are growing the amount of dollars in circulation, without backing them with anything other than ink and paper. In so doing, the warehouses of dollars that the chinese have, will be worth much less, going forward. Why would they come and purchase more dollar backed securities, fully knowing that the securities will be worth far less than they are going to pay when inflation is factored in. Inflation is surely a scourge that is about to envelope our economy. The only way to minimize the inflationary spiral that is on the horizon, is to withdraw capital from the markets, essentially creating a recession to last a decade or longer, spreading the pain from a year or two huge downturn into a 1 to 2 decades slump. We would need to figure out how to withdraw capital from the system, slightly in advance of any pick-up of economic activity, essentially treading water with our economy as the fed withdraws liquidity.