Foolish to short treasuries. Fed has basically said it is going to manipulate long term rates by buying treasuries for their balance sheet.
Everyone knows the fundamentals of US gov't are horrible right now, so this seems like a smart play. Because of this, however, on top of the fed buying treasuries, ultimately the gov't will step in and disallow shorting treasuries to avoid the same fate as Lehman and (almost) Citi (shorted to death).
Good luck with your trade. Hopefully you can sleep at night knowing you are betting against America.
Treasury Selloff: We May Be Approaching Bailout Limits [View article]
Is It Time to Short Bonds? [View article]
Everyone knows the fundamentals of US gov't are horrible right now, so this seems like a smart play. Because of this, however, on top of the fed buying treasuries, ultimately the gov't will step in and disallow shorting treasuries to avoid the same fate as Lehman and (almost) Citi (shorted to death).
Good luck with your trade. Hopefully you can sleep at night knowing you are betting against America.