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It's hard to believe this is happening given what's happened in the year since S&P...

It's hard to believe this is happening given what's happened in the year since S&P downgraded the U.S., but the greenback and Treasurys both sell off following the Moody's warning of a possible cut in America's credit rating. The long bond yield rises 3.5 bps to 2.84%. The bull dollar ETF: UUP -0.5% premarket.
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Comments (3)
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    Its funny but with 16 trillion in debt..and increasing 2 trillion a year....if interest rates go up only 2-3%...Moodys will have to drop the debt to BBB..the 10 years used to be 7-8% on average...now the Fed will buy everything to keep the rate down...they have to ...if they want the US dollar to still keep its reserve currency status...but then again...I doubt they can save it...
    11 Sep 2012, 09:27 AM Reply Like
  • grfiv
    , contributor
    Comments (2) | Send Message
     
    Of course I agree with youngman442002 but Treasuries have been the best asset class for 15 years; will something else replace them? The bonds of the most profligate debtor in history are the most-attractive asset class. Wow.
    11 Sep 2012, 09:48 AM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (1905) | Send Message
     
    Excuse me, may I please reserve a room at Belleview?
    I can only see rampant inflation. We will still be here, some borders may be redrawn in Europe, bankers will weep and gnash their teeth, and will many others. BUT, unless we go back to trading stone wheels or beads, then there will be fiat currencies. Thing of it is, what will they buy compared to today. A lot less. So, find a hedge.

     

    For now get $'s! Get more than you can count! Get them thru the hot sectors then be nimble and switch to the new hot sector when it comes.

     

    This debt thing will have an end, all ropes do. An old Bahamian Sea Captain told me, [regarding some hard times I was having getting a small boat to Haiti] Steer for land my son, and keep a hard hand on the tiller, steer for land, it is there, and stop worrying, 'every rope has an end'.

     

    Now comes the hard part: LEARN TO SHORT THE MARKET!!!

     

    Have a nice trade.

     

    Capt. Brian
    The Lost Navigator
    11 Sep 2012, 10:35 AM Reply Like
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