"They say unemployment rate, but they really mean" the S&P 500 (SPY), says David Rosenberg, referring of course, to the esteemed members of the FOMC. "After all, to get the wealth effect to work on spending, you have to generate the wealth," he continues. As for the sustainability of the rally in both equities and fixed income, Rosenberg is having déjà vu: "Distortions caused by negative real interest rates, the mis-pricing of risk and promotion of leverage sounds a lot like the previous cycle … enjoy it while you can." (Also: NYSE margin debt signals return of leverage) [View news story]
Nothing but compressed air...... I think that summarizes the situation.The 10 yr at 1.8 give or take is a shame. Ben has taken from those who saved and planned and were conservative in their lives and replaced it with debt and risk. Deflation is a very powerful force but cleaning out the system can never happen by pouring on debt. Your money is worth nothing because the Fed Res used its powers to destroy the value of saving. We can only pray that God has given us a second chance as we frack our way out of this mess. China sets up dollar replacement deals while the Gov sits on Ben's last opportunity to act. We need a big deal and soon.
China increased its holdings of U.S. Treasuries by $8.7B in February according to the Treasury Department. Meanwhile. Japan unloaded $6.8B of U.S. government debt, bringing its stash to $1.097T, a one year low. Analysts attributed some of the selling by the Japanese to positioning ahead of the BOJ's monumental easing campaign. China's holdings sat at a 15-month high going into March.[View news story]
All warfare is economic in a nuclear age. The problem is the folks who have the best nukes don't understand the issue.
Gundlach: Weighing in on one of the world's more hated asset classes, he says Treasurys aren't terribly overvalued on a relative basis. If you've got to short government paper, make it that of France, he says, where the 2-year note yields 0.13% and the 10-year 2.11%. [View news story]
Its all about the real interest rates. Bernake will keep the ten yr 1% below the real rate till inflation is back. It is about jobs and lending. Its not about low risk and a clear path. He is willing to experiment. He is doing something we have never seen. The question is will the "spring board" of expectations turn violently or calmly. It is that simple. If you think violent - short long bonds. (TBT, etc) If you think clamly - stay with TLT till it is obvious the bonds are falling and rates are going up at a rate that will eat his margin. Look for false starts.
Are bells ringing for bond bears? First incoming BOE Governor Mark Carney lauds the idea of nominal GDP targeting, then the Fed axes its inflation target in favor of a focus on lower unemployment. Now U.K. Treasury Chancellor Osborne says he would consider scrapping that country's 2% inflation target in exchange for something more growth-oriented. [View news story]
What is the risky asset, asks Jim Grant, scratching his head over the worldwide move into fixed-income paper "certified" as safe (I, II, III), even as the actions of central banks make them "certifiably unsafe." Calling the fiscal cliff the Y2K of 2012, Grant says time is better spent searching for cheap assets (MetLife previously). "Stocks bought well are going to do well. Bonds yielding nothing are not." [View news story]
Bernake is stealing from those of us who saved because the other idiots are broke. He can only save the money system with money. Its that simple. If he held you up with a gun we would put him in jail... but because he has an "office" he takes where he can take. He is all about keeping the system up. Would you rather see people dying in the streets of hunger etc. That is what would happen... so use TLT until you see a turn - 130 t 132 and then switch to TBT when the ten yr hits 1.2 to 1.3 Just go along for the ride. Drop the principles....
"We are in the midst of a major deleveraging in the entire developed world," says BlackRockCIO Rick Rieder, with a rare kind word for those piling into "safe" assets like Treasurys and high-grade corporate debt. He points to an unprecedented aging of the population as keeping a lid on growth. Instead of losses, just maybe a backup in rates will bring forth another wave of cash now sitting on the sidelines. [View news story]
Bingo!! Ben are you listening!!! Let the rates go up so us retirees can think of spending some of our dough. I am not spending anything I do not have to spend until I see my money being worth something. I can't feel safe with the returns you are IMPOSING on those of us who have lived within our means and SAVED our money. I am NOT spending until rates go up. I don't mean to Jimmy Carter days - just 2% above inflation on the ten year treasury. Please - get your foot off my neck. I didn;t do anything but save and live a frugal and reasonable life. Till then I will wait. If you screw this up long enough the coiled spring of inflation will destroy our nation. We can not afford to pay too much or the national debt will kill us. Its time to start the process!!!! Get back to normal!!!
ProShares sets splits and reverse splits on 11 of its levered ETFs to try and bring the share prices back to levels more palatable to traders. Among those affected is a favorite of pain-seekers, the double-levered short 20+ Year Treasury fund (TBT), which will see a 1-for-4 reverse split on Oct. 4. [View news story]
TBT.... ugh!! Buy below 2 dollars.... AFTER the split!! :)
The Russell 2000 ETF (IWM) has broken out to an all-time high while the Dow and S&P remain a few percentage points shy of theirs, notes John Spence. Not only have small caps shown relative strength of late, but sizable inflows into their ETFs (IWM AUM +4.5% just yesterday) also suggest a greater appetite for risk-taking among investors. [View news story]
On the Brink: Paulson's Memoir of the Financial Crisis [View article]
I was going to retire back in 2006 when I turned 60. Now at 59 it looks like maybe by 2020. I had planned to dedicate my life to helping others through my church full time. Thank you Mr. Paulson and Mr. Bush. The damage you have caused and the pain, hunger, loss of homes, life and happiness can hardly be measured they are so great. May the Devil have his way with you.
Cramer's Lightning Round - Amazon Is a Gift (12/18/09) [View article]
Lieberman is an idiot. He played hard to get and got found out. VOTE HIM OUT!!! When these guys play the game for their 15 minutes and not stick with their previous convictions and then filp flop back - and for what? He removed his own program to support a Medicare buy-in for those over 55. He needs to be brought down a notch or two. We need dedicated people who respect what they are there to do. Negotiate for the good of our country not get a big image for job security... VOTE HIM OUT!!!
On Dec 20 08:09 AM a. palmer jr. wrote:
> I thought Lieberman was FOR health reform. He was just grandstanding > and wanting attention when he said he wouldn't vote for it!
Some Banks Walking Away from Home Foreclosures [View article]
I can't afford to pay for the mistakes of people who bought homes they can not afford. Period. I just can't. My family is already on the brink. You can not get blood from a turnip. I am broke. I am NOT in debt, but I am broke. If the plan is to drag me down into the sewer of debt, them I vote "NO!". My CC debts are manageable because I chose to keep them manageable. My house payments are affordable. My house has fallen down too. I am on the brink. PLEASE... do not drag me into debt!
"They say unemployment rate, but they really mean" the S&P 500 (SPY), says David Rosenberg, referring of course, to the esteemed members of the FOMC. "After all, to get the wealth effect to work on spending, you have to generate the wealth," he continues. As for the sustainability of the rally in both equities and fixed income, Rosenberg is having déjà vu: "Distortions caused by negative real interest rates, the mis-pricing of risk and promotion of leverage sounds a lot like the previous cycle … enjoy it while you can." (Also: NYSE margin debt signals return of leverage) [View news story]
I think that summarizes the situation.The 10 yr at 1.8 give or take is a shame. Ben has taken from those who saved and planned and were conservative in their lives and replaced it with debt and risk. Deflation is a very powerful force but cleaning out the system can never happen by pouring on debt. Your money is worth nothing because the Fed Res used its powers to destroy the value of saving. We can only pray that God has given us a second chance as we frack our way out of this mess. China sets up dollar replacement deals while the Gov sits on Ben's last opportunity to act. We need a big deal and soon.
China increased its holdings of U.S. Treasuries by $8.7B in February according to the Treasury Department. Meanwhile. Japan unloaded $6.8B of U.S. government debt, bringing its stash to $1.097T, a one year low. Analysts attributed some of the selling by the Japanese to positioning ahead of the BOJ's monumental easing campaign. China's holdings sat at a 15-month high going into March. [View news story]
Gundlach: Weighing in on one of the world's more hated asset classes, he says Treasurys aren't terribly overvalued on a relative basis. If you've got to short government paper, make it that of France, he says, where the 2-year note yields 0.13% and the 10-year 2.11%. [View news story]
Are bells ringing for bond bears? First incoming BOE Governor Mark Carney lauds the idea of nominal GDP targeting, then the Fed axes its inflation target in favor of a focus on lower unemployment. Now U.K. Treasury Chancellor Osborne says he would consider scrapping that country's 2% inflation target in exchange for something more growth-oriented. [View news story]
U.S. Treasury Bonds: The Short Of 2013? [View article]
What is the risky asset, asks Jim Grant, scratching his head over the worldwide move into fixed-income paper "certified" as safe (I, II, III), even as the actions of central banks make them "certifiably unsafe." Calling the fiscal cliff the Y2K of 2012, Grant says time is better spent searching for cheap assets (MetLife previously). "Stocks bought well are going to do well. Bonds yielding nothing are not." [View news story]
"We are in the midst of a major deleveraging in the entire developed world," says BlackRockCIO Rick Rieder, with a rare kind word for those piling into "safe" assets like Treasurys and high-grade corporate debt. He points to an unprecedented aging of the population as keeping a lid on growth. Instead of losses, just maybe a backup in rates will bring forth another wave of cash now sitting on the sidelines. [View news story]
ProShares sets splits and reverse splits on 11 of its levered ETFs to try and bring the share prices back to levels more palatable to traders. Among those affected is a favorite of pain-seekers, the double-levered short 20+ Year Treasury fund (TBT), which will see a 1-for-4 reverse split on Oct. 4. [View news story]
Buy below 2 dollars.... AFTER the split!! :)
The Russell 2000 ETF (IWM) has broken out to an all-time high while the Dow and S&P remain a few percentage points shy of theirs, notes John Spence. Not only have small caps shown relative strength of late, but sizable inflows into their ETFs (IWM AUM +4.5% just yesterday) also suggest a greater appetite for risk-taking among investors. [View news story]
Previewing September's Employment Report [View article]
On the Brink: Paulson's Memoir of the Financial Crisis [View article]
Cramer's Mad Money - 5 Strategies for Making Money in a Bear Market (12/28/09) [View article]
Fannie / Freddie - What Does Treasury Know? [View article]
Cramer's Lightning Round - Amazon Is a Gift (12/18/09) [View article]
On Dec 20 08:09 AM a. palmer jr. wrote:
> I thought Lieberman was FOR health reform. He was just grandstanding
> and wanting attention when he said he wouldn't vote for it!
Some Banks Walking Away from Home Foreclosures [View article]