Posted on 04/03/2011 5:57:12 PM PDT by Nachum
NEW YORK—While Federal Reserve officials openly feud over the right time to begin tightening monetary policy, Treasury investors are starting to lean with the hawks. U.S. Treasurys last week endured their longest losing streak in more than two decades—nine consecutive days—and ended the worst quarter since late 2009 as U.S. government bondholders brace for the end of "quantitative easing" and a sooner-than-expected interest-rate increase. The yield on the two-year note, which is traditionally the most sensitive to shifting monetary-policy outlooks, touched 0.901% on Friday, the highest level since May 10, before trading at 0.805% late in the day.
(Excerpt) Read more at online.wsj.com ...
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Considering the stockmarket run up is completely built on QE, once that golden gravy train stops... yeah its all coming crashing down.
The yield on the two-year note, which is traditionally the most sensitive to shifting monetary-policy outlooks, touched 0.901% on Friday, the highest level since May 10, before trading at 0.805% late in the day.Many of us remember when a good old basic passbook savings acc't yielded 5%, and compounded rates were what we looked for. :')
The Fed created this. They worked it, and left it. Analyze it IMO. :)
Start getting serious about cutting the budget and we’ll have alot more flexibility with things.
Start getting serious about cutting the budget and we’ll have alot more flexibility with things.
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Agreed ,, if we can’t cut 5-10% in this budget we deserve everything China throws at us... I’m just glad I locked in a price on my building lots in USD...
There is an article over on zerohedge that says the Fed bought 80+% of the Treasurys sold since the start of QE2. (we know it wasn’t PIMCO). There is a different kind of tsunami coming our way. As long as Ben keeps printing to keep up appearances, there is a chance that the Eurozone will explode; then us. God help us.
God help us. Amen.
The Euros are going to raise rates to attract the little free capital out there. Bernake will have to buy all of Timmys Bonds.
I agree with you in principle, but also think that some of the run up is due to the inflationary impact of the devalued dollar. The underlying assets (ie factories, inventories) have inflatedin price and those are reflected in an increase stock price, despite no real value being added. Any maintenance/additions in sales though I agree are driven by the QE.
Thanks for all you do Nachum. Your list is a timeline of infamy. I pray we make it out the other side.
Me too...
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