Posted on 06/10/2009 10:56:08 AM PDT by PogySailor
NEW YORK (MarketWatch) -- U.S. stocks took another leg down on Wednesday, after a mixed government auction of 10-year Treasury notes, which showed the Treasury had to offer higher yields to attract buyers.
(Excerpt) Read more at marketwatch.com ...
Buying our own debt with newly printed money? What can go wrong?
Raise your hand if you did NOT see this coming.
those interest rates are going to be much higher by the end of the year
Only if you live in la la land would you NOT see this coming.
No ‘Rule of Law’, no confidence, no asset value...
snowball effect.
Wait till they see tomorrow’s 30 year auction.
The Obama Administration did not see this coming.
These birdbrains are going to crush their own program...garbage that it is.
The dollar’s getting waxed, the bonds are getting flattened, and all rates are soaring.
This will not end well. Not well at all.
Not to mention soaring price increases in all imported items (except Chinese). You know, things like OIL.
The Treasury is going have to be selling lots of bonds to finance all the Federal spending. In order to lure buyers, interest rates paid on the bonds have to go up. With mortgages and other consumer loans tied to the 10 year Treasury bonds, that means consumers are going to be hit with higher rates.
Interest rates would be even higher, but the Federal Reserve has committed to buying $300 billion worth of Treasury bonds this year, in order to keep them off the market and keep interest rates paid on the bonds as low as possible. However, with the huge deficits coming in the next decade, interest rates are bound to rise. The slight of hand business where the Treasury issues bonds and the Federal Reserve buys them can’t last forever. In fact, the plan is only having limited success as it stands currently.
And, It will not end, until Obozo is out of office.
It’s gonna take a whole lot more than that.
That would be a “good” start.
I’ll be conference-room bound tomorrow, but checking in occasionally at http://acrossthecurve.com/ to see how that 30-year goes.
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