Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

The Big Collapse Could Be Very Near
Economic Policy Journal ^ | 5/31/09

Posted on 06/01/2009 1:38:05 PM PDT by FromLori

The Federal Reserve appears to be increasingly nervous about the long term bond market. This is serious. How panicked are they? After leaking a story on Friday, they are back at it on Sunday.

The Federal Reserve leaked to CNBC's Steve Liesman on Friday that they weren't targeting long rates. Why such a leak? Probably because the Fed did not want to appear impotent in controlling the long rate. So they put out the word through Liesman that they weren't targetting the long rate. Can you imagine what would happen to the markets if it sensed long rates were beyond the control of the Fed?

The Fed can of course print money to buy up every Treasury bond in existence, but the inflationary ramifications would be Zimbabwe like, and crush the dollar on international currency markets. Are we near the phase where all hell breaks loose? I have never even answered, maybe, to this question before. It's always been, "no." Now it's maybe.

What really has me spooked is another article out this afternoon (on a Sunday) that Drudge has even picked up. It's a Reuters story by Alister Bull. The headline: Federal Reserve puzzled by yield curve steepening.

Translation, the Fed doesn't know what is going on, but they are really scared.

Here's more from Bull:

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


TOPICS: Business/Economy; Government
KEYWORDS: bho44; bhoeconomy; cwii; economy; fed; second100days; thecomingdepression
Navigation: use the links below to view more comments.
first 1-2021-4041-6061-8081-97 next last

1 posted on 06/01/2009 1:38:05 PM PDT by FromLori
[ Post Reply | Private Reply | View Replies]

To: FromLori
Sounds like a lot of Bull.

sorry. sorry. sorry. sorry.

2 posted on 06/01/2009 1:40:57 PM PDT by null and void (We are now in day 133 of our national holiday from reality.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: FromLori
...the Fed doesn't know what is going on, but they are really scared.

Not to worry, the Messyah says we have hit bottom and are on the road to recovery thanks to his stimulus plan. /s

3 posted on 06/01/2009 1:41:26 PM PDT by EGPWS (Trust in God, question everyone else)
[ Post Reply | Private Reply | To 1 | View Replies]

To: FromLori

The ignorance at the Fed is astonishing. They want to pretend they didn’t know what was going to happen when they started buying T-bills? That all of Obama’s debting was going to kill the demand for US bonds? That screwing around with the markets wasn’t going to bite them in the ass?


4 posted on 06/01/2009 1:42:13 PM PDT by misterrob (A society that burdens future generations with debt can not be considered moral or just)
[ Post Reply | Private Reply | To 1 | View Replies]

To: FromLori

Related

http://www.reuters.com/article/ousiv/idUSTRE54U1NZ20090531


5 posted on 06/01/2009 1:42:36 PM PDT by FromLori (FromLori)
[ Post Reply | Private Reply | To 1 | View Replies]

To: FromLori

marker


6 posted on 06/01/2009 1:44:13 PM PDT by JDoutrider
[ Post Reply | Private Reply | To 1 | View Replies]

To: FromLori

I have relatives in India, and I may move there until the initial collapse is over. I’d be back before we conservatives storm Washington to retake the US though.


7 posted on 06/01/2009 1:44:17 PM PDT by Little Pig (Is it time for "Cowboys and Islamofanatics" yet?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: misterrob

No problem. Barry will just write it off as an inheritance from the Bush Administration like he’s been doing for the past 5 months.


8 posted on 06/01/2009 1:44:42 PM PDT by jersey117
[ Post Reply | Private Reply | To 4 | View Replies]

To: FromLori

The Obamaloon couldn’t pass an elementary calculus course.

And he makes his cabinet of loon-O-tics look smart.

We are in big, big trouble. I pray that I am on Obama’s jury when we bring him up for charges - right after he and his fellow libart idiots are impeached and sent to we peons for subsequent punishment.


9 posted on 06/01/2009 1:45:24 PM PDT by Da Coyote
[ Post Reply | Private Reply | To 1 | View Replies]

To: FromLori

An innocent and sincere question. If this is a potential panic moment, why is the Dow up 221 pts today?


10 posted on 06/01/2009 1:45:30 PM PDT by GWB00 (Barbara Streisand barely made it out of high school.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: FromLori
The Big Collapse Could Be Very Near

If this happens, then the fault lies squarely with the socialist usurper in the oval office. And don't forget the dim cry:

It's the economy, stupid!

11 posted on 06/01/2009 1:46:05 PM PDT by The Sons of Liberty (FUBO - Don't Tread on Me!)
[ Post Reply | Private Reply | To 1 | View Replies]

Comment #12 Removed by Moderator

To: FromLori
Do not worry. Obama socialism is saving the day, aren't you glad that the government has nationalized GM? (extreme sarcasm).
13 posted on 06/01/2009 1:47:11 PM PDT by jveritas (God Bless our brave troops)
[ Post Reply | Private Reply | To 1 | View Replies]

To: FromLori

yuh house yuh biwding ah ours........


14 posted on 06/01/2009 1:47:16 PM PDT by yldstrk (My heros have always been cowboys--Reagan and Bush)
[ Post Reply | Private Reply | To 1 | View Replies]

To: FromLori

“Translation, the Fed doesn’t know what is going on, but they are really scared.”

I think they know exactly what’s going on, and that’s why they are scared. China, Japan and Saudi Arabia are quietly trying to sneak out the side door with no one noticing. But at some point someone will shout “fire!” and it will be a mad rush as every entity on the planet seeks to dump dollars and US Treasuries. At that point our ballooning debt becomes internalized and monetized. And yes, we will have a dollar that becomes worthless on international markets, and inflation that makes us yearn for the Carter years.

Add the crushing “Cap & Tax” legislation, the “no drill” executive orders, union payback legislation....we have created the perfect storm for the destruction of the American economy.

I awoke this morning with a feeling of foreboding...a very bad feeling that disaster is looming. I know what’s coming and am resigned to watching it happen.


15 posted on 06/01/2009 1:47:53 PM PDT by henkster (The GOP is housebroken window-dressing displayed to portray the fiction of a Republic.)
[ Post Reply | Private Reply | To 1 | View Replies]

Comment #16 Removed by Moderator

To: GWB00

I heard it was because GM and Citi were yanked from trading today.


17 posted on 06/01/2009 1:49:45 PM PDT by ichabod1 (I am rolling over in my grave and I am not even dead yet (GOP Poet))
[ Post Reply | Private Reply | To 10 | View Replies]

To: FromLori

But, but, but, but, but the dow is up 221.11 Today

Surley those Ivy league stockbrokers know what they are doing.


18 posted on 06/01/2009 1:50:01 PM PDT by qam1 (There's been a huge party. All plates and the bottles are empty, all that's left is the bill to pay)
[ Post Reply | Private Reply | To 1 | View Replies]

To: henkster

In other words, a new civil war or revolution?


19 posted on 06/01/2009 1:51:12 PM PDT by Biggirl ("Live Long And Prosper!"-Mr. Spock:)=^..^==^..^==^..^==^..^=)
[ Post Reply | Private Reply | To 15 | View Replies]

To: GWB00

I would only have a personal opinion but that would be the calm before the storm or luring in the remaining suckers.

The Market Ticker guy says...

We Are In Looneyville
When a market rally drags a firm’s stock that has declared bankruptcy, and which has filed a plan that will result in the effective total destruction of its common stock, into the green by 20%, you know we live in looneyland.

That would be GM, which opened down at 50 cents but now is trading at 90, up fifteen cents from Friday.

Note that the common is worthless; the prepackaged bankruptcy and Section 363 sale will strip all of the value from the current GM and transfer it to the new GM.

The “old” GM will have a negative net value, which means the common stock (which represents “old” GM) is worth exactly bupkis.

Yes, this is all daytraders playing around - I get that.

But I’d like anyone to explain how GM’s common stock has any value in it whatsoever, and is trading on anything more than pure hype on a big up day.

Good luck with that analysis.

Disclosure: No positions material to this idiocy.

http://market-ticker.org/

You know the stock market acted oddly before 1929 too.


20 posted on 06/01/2009 1:51:57 PM PDT by FromLori (FromLori)
[ Post Reply | Private Reply | To 10 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-4041-6061-8081-97 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson