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U.S. sells debt with a negative yield for 1st time
Reuters ^ | 10/25/10 | Richard Leong

Posted on 10/25/2010 1:06:27 PM PDT by Nachum

The U.S. Treasury Department on Monday sold securities that fetched a negative yield for the first time, implying investors are willing to pay the government to own its debt. This is a milestone in the current rock-bottom interest rate environment, as the Federal Reserve is widely expected next week to announce it will buy more Treasuries to jump-start a sluggish economy. Typically, investors buy a new Treasury bond at "par" or $100. At Monday's $10 billion auction of five-year Treasury Inflation-Protected Securities (TIPS), they paid more than $105

(Excerpt) Read more at reuters.com ...


TOPICS: News/Current Events
KEYWORDS: debt; negative; sells; yield
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Cue up Merle Haggard
1 posted on 10/25/2010 1:06:29 PM PDT by Nachum
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To: Jet Jaguar; NorwegianViking; ExTexasRedhead; HollyB; FromLori; EricTheRed_VocalMinority; ...

Merle Haggard, Are the Good Times Really Over?

http://www.youtube.com/results?search_query=merle+haggard+are+the+good+times+really+over&aq=3

The list, ping

Let me know if you would like to be on or off the ping list

http://www.nachumlist.com/


2 posted on 10/25/2010 1:07:35 PM PDT by Nachum (The complete Obama list at www.nachumlist.com)
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To: Nachum

This is crazy.


3 posted on 10/25/2010 1:08:18 PM PDT by rovenstinez
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To: Nachum

We are free falling towards the bottom as we walked over the cliff.


4 posted on 10/25/2010 1:10:48 PM PDT by TrumpisRight (Proud Moosehead....)
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To: rovenstinez

Obama’s America. It’s over - 234 years - it was a nice run. Blame idiots who watch TV for losing their/our liberty.


5 posted on 10/25/2010 1:11:51 PM PDT by Frantzie (Imam Ob*m* & Democrats support the VICTORY MOSQUE & TV supports Imam)
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To: rovenstinez

They are desperately trying to inflate. The problem is that if they inflate by 0ne trillion, but soaving and forclosures deflate by 2 trillion, we get net deflation. They are desperate.

We are not merely living in “interesting” times. We are living in historic times. And there is virtually no chance this will end well.


6 posted on 10/25/2010 1:12:46 PM PDT by RobRoy (The US Today: Revelation 18:4)
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To: Calif4Palin

People with bonds and bond funds will get killed when this eventually flips.

We live in a nation of idiots.


7 posted on 10/25/2010 1:13:00 PM PDT by Frantzie (Imam Ob*m* & Democrats support the VICTORY MOSQUE & TV supports Imam)
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To: Nachum
Treasury Inflation-Protected Securities

It's the "inflation protection" they are paying for. It could turn out to be a really good deal. Gold and commodities can and have tanked. Here, you can park an asset and pretty much know you won't lose more than the some percent of the rate of inflation. This is clearly a flight to safety.

8 posted on 10/25/2010 1:14:30 PM PDT by Lonesome in Massachussets (If not Boston, then Texas. Go Rangers!)
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To: Nachum

This wouldn’t happen if the market was permitted to fix its own excesses and dislocations.


9 posted on 10/25/2010 1:16:01 PM PDT by steve86 (Acerbic by nature, not nurture)
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To: Nachum

Cash out your 401K’s now while you still can.


10 posted on 10/25/2010 1:16:16 PM PDT by SeeSharp
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To: Nachum

Who was the buyer? The Fed? I can’t imagine anyone else paying the gov’t to own it’s debt.


11 posted on 10/25/2010 1:17:17 PM PDT by pgkdan (Protect and Defend America! End the practice of islam on our shores before it's too late!)
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To: RobRoy
We are not merely living in “interesting” times. We are living in historic times. And there is virtually no chance this will end well.

Depends on your time line. Most of the great nations of history (The US being a rare exception) are born out of the ashes of a previous empire. And the harder the fall the bigger the bounce. In the Eastern half of the Roman Empire, where the fall was not nearly so bad, there was no need for a Renascence. A complete collapse causes a society to reevaluate everything. Western Capitalist Europe was born out of the collapse of the Feudal system caused by the Black Death. Imperial China was born out of the economic devastation of waring stats period. The socialist welfare state cannot be "fixed". It needs to crash and burn so that a new system of governance can be devised.

The down side is that things are going to be very bad for a long time. Our grand kids may be part of a new, reborn invigorated America. But life for us is going to be rather nasty.
12 posted on 10/25/2010 1:22:54 PM PDT by GonzoGOP (There are millions of paranoid people in the world and they are all out to get me.)
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To: Nachum

Geithner and Bernanke are screwing us...................


13 posted on 10/25/2010 1:27:57 PM PDT by Red Badger (WOULD SOMEBODY PLEASE GIVE MEGHAN MCCAIN A BOX OF KRISPY KREMES SO SHE'LL SHUT THE HELL UP?!)
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To: rovenstinez; Nachum

“This is crazy”

It feels like we are rolling down a stairway, unable to stop.

The world is stark, raving mad right now.


14 posted on 10/25/2010 1:28:20 PM PDT by Psalm 144
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To: Nachum

I have to look into this. There must be a goldmine in there somehow if you can buy below value.

Maybe on a maturity?


15 posted on 10/25/2010 1:29:19 PM PDT by Vendome (Don't take life so seriously... You'll never live through it.)
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To: Nachum

The Party’s Over

Artist: Willie Nelson

Turn out the lights
The party’s over
They say that
All good things must end
Call it tonight
The party’s over
And tomorrow starts
The same old thing again

But the crazy crazy party
Never seen so many people
Laughing dancing
Look at you you’re having fun
But look at me
I’m almost cryin’
That don’t keep her love from dyin’
Misery cause for me the party’s over
Turn out the lights...

Once I had a love undyin’
I didn’t keep it but I tried
Life for me was just one party
And then another
I broke her heart so many times
I had to have my parting wife
I had to have my party
Why broke her heart so many times
But one day she said
Sweetheart the party’s over
Turn out the lights...


16 posted on 10/25/2010 1:30:40 PM PDT by Red Badger (WOULD SOMEBODY PLEASE GIVE MEGHAN MCCAIN A BOX OF KRISPY KREMES SO SHE'LL SHUT THE HELL UP?!)
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To: Vendome
I have to look into this. There must be a goldmine in there somehow if you can buy below value.

I have never heard of 'selling short' on securities. Maybe there is an expert out there to advise us.

17 posted on 10/25/2010 1:31:49 PM PDT by Nachum (The complete Obama list at www.nachumlist.com)
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To: GonzoGOP

“The down side is that things are going to be very bad for a long time. Our grand kids may be part of a new, reborn invigorated America. But life for us is going to be rather nasty.”

I have thought about this often during the past couple of years. Given the characteristics of “country class” Americans, I think we will rebound like Normans out of the fall of the rotted Carolingian imperium.


18 posted on 10/25/2010 1:32:27 PM PDT by Psalm 144
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To: Red Badger

http://www.youtube.com/watch?v=UmO_04yYi9Q


19 posted on 10/25/2010 1:32:40 PM PDT by Nachum (The complete Obama list at www.nachumlist.com)
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To: The Comedian

Get a load of this ****.


20 posted on 10/25/2010 1:32:56 PM PDT by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
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