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  • "We're in a highly levered economy where households can't afford to pay much more interest," writes Bill Gross, noting monthly payments on a 30-year mortgage have jumped 20-25% since January and mortgage applications have plummeted 39% in 2 months. He's not buying Bernanke's tough talk given the reality of our economy and the chairman's "helicopter" reputation. "Investors selling Treasurys (TLT, TBT) in anticipation the Fed will ease out of the market might be disappointed." [View news story]
    Sounds like Bill Gross might be long TLT at 120 and under water.
    Jun 25, 2013. 04:17 PM | 3 Likes Like |Link to Comment
  • Felix Salmon hopes gold "will continue to fall, that goldbugs will look increasingly silly, and that as a result Americans with savings will conclude that the best thing to do with those savings is to put them to work in a productive manner" - out of fear-based assets like gold, Treasurys and cash and into greed-based assets like stocks and bank loans so more money flows through the economy. [View news story]
    And then as soon as "more money flows through the economy", that will cause Velocity to surge and create massive inflation, which returns capital back into Gold/Silver. Its a trap. Might as well stay the course and wait for stop loss sellers to exit, Short-sellers to cover, and bargain buyers to step in. This is truly ridiculous. And what would be even MORE ridiculous would be to panic sell into this mess.
    Apr 16, 2013. 02:51 AM | 3 Likes Like |Link to Comment