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Turning to trading, Stan Druckenmiller says it's "complete nonsense" to believe low Treasury...

Turning to trading, Stan Druckenmiller says it's "complete nonsense" to believe low Treasury yields reflect a market copacetic with the state of government finances. "The market isn't saying anything about the future. It's saying there's a phony buyer (the Fed's QE) of $19 billion of Treasurys a week." Druckenmiller is long Treasurys.
 
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Comments (8)
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Absolutley true. Low yields are artificially low because Ben is buying UST's by the bushel and holding the yields down.

     

    Interesting that Stan D is long Treasury's which I take it to mean he must really be scared about Europe. Basically he must think the US sucks less.
    14 May 2011, 10:57 PM Reply Like
  • nmelendez
    , contributor
    Comments (1622) | Send Message
     
    they are waiting for china to dump treasuries and then raise yields to 5 to 6 percent...wait and watch.
    14 May 2011, 11:45 PM Reply Like
  • Otto Mann
    , contributor
    Comments (2) | Send Message
     
    The only way for the yields will jump to 5 or 6 percent is if the price falls drastically. Unless he's lying about being long, that's not something he wants to see happen.
    22 May 2011, 12:46 PM Reply Like
  • jd123
    , contributor
    Comments (173) | Send Message
     
    Copacetic
    –adjective Slang .
    fine; completely satisfactory; OK.

     

    Heh, learn something new every day.
    15 May 2011, 12:45 AM Reply Like
  • User 353732
    , contributor
    Comments (4889) | Send Message
     
    It reflects the circularity of economic deception and financial fraud.

     

    Big Govt issues fraudulent debt ,then provides virtually free fiat dollars to Big Money which then "buys" this bad public debt and shifts all risk to the privately employed middle class while Big Media applauds and assures the world that all is well in the best of all possible worlds in the Plantation Economy of the US Regime.

     

    Bad Govt using bad money to buy bad debt to aggrandize and entrench depraved and illegitimate elites has characterized the terminal stages of all once great polities and republics throughout history.
    15 May 2011, 08:27 AM Reply Like
  • Ken Hasner
    , contributor
    Comments (427) | Send Message
     
    Why then is Druckenmiller long if the FED is slated to drop the support he vehemently claims if supporting the market ?

     

    Perhaps because he realizes that yields are low because of global economic instability just as they were before the FED started supporting the market.
    15 May 2011, 10:37 AM Reply Like
  • Leftfield
    , contributor
    Comments (3815) | Send Message
     
    "It's 'complete nonsense' to believe low Treasury yields reflect a market copacetic with the state of government finances."

     

    Government-"backed" bonds and stock markets are a game of musical chairs only good for trading, like residential RE several years ago, and any participants who aren't breathing only through their mouths are invested because they think they will be among the fortunate to find the exits in time.
    24 May 2011, 11:11 AM Reply Like
  • ph38
    , contributor
    Comments (2) | Send Message
     
    If you follow "buy on rumor sell on fact" then knowledge of the upcoming end of QE2 indicates a sell for commodities, which, also counter-intuitively creates a flight to safety into already expensive treasuries. I think Druckenmiller is long only to profit from this flight to safety and probably not too long. He'll turn faster than many of us, despite the size of his portfolio - it is the deepest market after all...
    27 May 2011, 09:49 AM Reply Like
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