dr.doolittle

Bond Expert: Monday Outlook

The story is that the Russians are going to devalue the ruble. If I were a European wouldn't I find that scary and want to by US Treasuries? And if I were China and Japan isn't the most terrifying prospect that Americans not only can no longer spend but actually start saving? It's not like the government is doing anything to promote savings among the people to date--bailouts of deadbeat corporations is obviously money down a rat hole which will lead to higher taxes and, of course less savings. Once Goldman Sachs is booted out of the White House that could improve. Could that provide support for bonds as well? And of course the baby boomers are retiring... that should be very supportive of bonds, provided they have any money left. And banks...well, they appear on the verge of a massive failure--if they wish to preserve capital only Government Treasuries seems to provide any security there. And there's a war going on which means continued supply for the forseeable future while at the same time providing some economic activity...Hmmm, now I know why I'm listening to "the bond guy."

Bond Expert: Friday Outlook

bonds are boring, that's why people make money in them. they're not stupid, though--and the stock market move smartly higher on Friday because Uncle Sam has successfully borrowed his way out of a financial collapse, so embrace the boredom! The real question for "the bond expert" is who isn't borrowing, right? Hasn't that been the disaster of the 90's and the entire automobile industry? They've borrowed themselves to death. It was only 10 years ago that Uncle Sam was running huge budget surpluses. Besides Pelosi and Reed, has our government changed to the bankrupt state? Or can it actually dig itself out of this hole? Now that isn't boring and we shall see how serious this recession is in the next few months.