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1 Month Bill Offered At -0.005%; 3 Month At 0.000%
Well, it's not quite the negative Bill prints we saw right after Lehman, but the second someone lifts that offer in the 1 Month, Americans will revert to paying the Treasury for the privilege of it holding 1 Month paper. Of course, the last time the 1M was on the verge of being negative, the S&P was at 666. We are now double that. What happens should stocks plummet by 50%, without the Fed withdrawing the massive amounts of liquidity still sloshing out there: -0.5%? -1.0%?
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Flash Crash...............Bitches.
The one month at -0.0005% brings new meaning to the term "Pay the man".
Money for nothin' and chicks for free;)
Cue Plunge Protection Team...ready in in 5...4...3...2...
nothin' fo money and hoes for rent
ftfy:)
for free bitchez?
Trash holding up well today. CMG green, BIDU about to go green. Obviously great stores of personal wealth.
i checked google trends....flash crash dropped back to almost zero...now that no one is expecting it, maybe we can get it
5 year TIPS has been negative for a year.
Nobody wants to touch commodities as well. So where else can the funds go?
Funds are getting low. Might as well just buy some beer and consume it. Then recycle the liquid waste back to Mother Earth.
That's what the government is doing to our future... P*ssing it away.
+1
It's about the bier bitchez. I'll have something Belgian.
“We don't have a precise read on why this slower pace of growth is persisting.”
Fed Chairman Ben Bernanke A primer in economics for Ben: 1. Printing is not savings. 2. You have a demand problem. 3. You have a debt problem, relative to incomes. 4. New debt must be paid from future earnings. Ergo, no future earnings means new debt is a drag on the economy. Ben.... they want you to come to the Dean's office....
Twist and shout!
Any day now, I'll start liquidating my Treasury portfolio (mostly 5 year).
But not yet. First, Bill Gross has to start buying......
You must be dumb enough to think your smarter than Bill Gross
I am sure Groos is still shorting Treasuries and dollar cost averaging the short. Bill Gross is not a short term trader so allthough he has not done well so far, this is only the very beginning of his trade. He is most likely dollar cost averaging in then will hold for years, then all the idiots that thought his trade was over and done after 3 months will eat their words.
Um, I went LONG 10 year notes in Feb, and my profits are locked in. Bill Gross went flat/short.
Who's the dummy, dummy?
LOL.
Ester: Who you calling ugly sucker?
Fred: YOU! I could push your face in some dough and make gorilla cookies.
Ester: Fred Sanford, you're a messy fool!!
Fred: uh, an, an' you a cessy pool!!
you shouldnt take bills public words for granted. remember, monetary policy must be surprising to have an effect.
Right. Bill often says one thing (for public consumption) and then does the opposite, or later reverses course. He even contradicts himself from time to time. If you like I can dig up some examples. He did not start investing yesterday after all.
yes pay the cat burgler to guard your money
No, better to be fully invested in equities, right? Dow 15k bitchez!!! Fucking moron.
???? Youre long treasuries????
The Fed Funds 'target' Rate is not quite at zero yet. There's still some room to move.
Why do people buy treasuries of one or three month duration at effectively 0% interest. Why not just keep the dollars and save on the transaction costs. Seriously im curious where the buying comes from and why. Thanks.
Because they are stupid. And some funds have to be invested per their prospectus.
No problem with that approach if you only have $100 to invest, but if you are managing $10 billion you can't put it on deposit at a bank and you can't put it under your mattress.
Wouldnt I keep the cash in the same place I keep the trrasury notes, where ever those are?
Explain what you mean by 'cash' if you don't mean currency. Because non currency 'cash' needs a holding vessel such as a savings account or CD, money market fund or a treasury bill.
or a mattress....
EDIT: of course for a mattress, you need 'cash' currency, i.e. pieces of real paper.
I think you would be safe in the low mid range- where you will not get skunked by falling prices( long) or submerged by negative- I need it now borrowing- short notes.
Hanging on to currency and cash is very,very hard in deflation.
It gets stolen, it gets taxed, it gets diluted, it gets confiscated(reverse repo) and swapped for debt.
Yes, the dollar is essentially trash, but its a transactional vehicle that everyone needs. And when they need it, they need it NOW.
You can elect to place your funds in a zero percent certificate of indebtness. Like the name states, you get zero percent in this "account". You can check it out at treasury direct.
cool nic
In a cruel twist of irony.....safety.
Keep the dollars? Where? In the matress?
How about Chipotles? CMG up $0.72. Good lord.
T-Bill buyers?
Uh, how about today's S&P (and HY and oil and any other risk asset) sellers?
love the name...
Hey Ben, how much to hold these for a month?
He already has you by those. The question is, how much to hold this?
We are paying him, and we are not holding it. It's inside us.
Well we are holding it with a sphincter.
Credit Agricole is in Default. World Must know it
Dexia, Santander
Largest bank in the world by bank deposits. Not so fast there...
OT2 is it? QE3?
I suspect that it's only a matter of time before saving money is considered an act of terrorism.
I wish that were funny. But when TPTB get scared they do make all kind of "new rules" and saving money, holding gold, and feeding your children instead of theirs could become "illegal and treasonous".
Citizen, you must be in debt. To not be in debt is economic terrorism... sure, why not?
Ignorance is strength!
So we got a helluva Biflationary morning:
Jobless claims? hehe; Europe "flashing red!"; US economic data at stall speed; And now a new oil crisis is born....
Expect the lies to thicken big time because they've got their backs squarely against the wall and the light shining in their eyes. The central planners will start fighting amongst themselves as now we're not in just a banking crisis anymore. That was at least something they have remedies for
OK, run that rabbit by one more time. How is it that money market funds make money? Enquiring minds want to know.
i can explain how money market fund managers make money if that helps.
Laughed out Loud.
+2
London bridge is falling down.
Negative rates during 1939
files.me.com/fransix/ldsgky
This magic moment! Stick-save territory.....
....and there you have it, an irrelevant slight beat in new home sales. How long will this uptick last? Begin counting,,,,,now!
I'd like to count... the amount of money the PPT has left...
Amazing how much bad economic news has been buried completely out of not only MSM but the blogosphere too. We're on the brink people.
"Why do people buy treasuries of one or three month duration at effectively 0% interest."
It's a dog and pony show. Nobody is buying these treasuries. The TBTF bank's are the bagmen for the Fed. Who print money out of thin air and pay the TBTF banks that small amount of money to flip it back to the Fed. Bingo! Ponzi. And 99.9% of Americans are sitting at home drinking a beer and watching Dancing with the stars. They haven't a clue and could care less, and only bitch about how their world is collapsing around them. Then they go out and elect an idiot like Obama, and many RINOs because they believe all the lies. They are truely MUSHROOMS!
Don't dis magic mushrooms. Everyone needs a cash crop;)
They've been kept in the dark and fed shit, of course they're "fun guys".
And what have you done to topple the man recently?
Bernanke isn't printing fast enough.
Today's outright collapse in the CRB index is proof.
you still going long?
I told you, it wasn't a reversal it was a trap.
Bernanke admitted he didn't know what was going on yesterday- to paraphrase. Theres a huge run to treasuries- what he needs to save bond market. But hes going to have to let the stock market fall to drive investors to the dying debt markets. I suggest getting into equities or cashing into an FDIC approved bank like right now. The money market complex is about to choke on it again and break the buck too. Short rates are going to plunge as people look to save their worthless currency. Long rates are going to skyrocket unless Ben does operation twist. Cue up Chubby Checkers music... I repeat. Run and duck for cover. This Fall is going to be a whopper that ends all whoppers unless QE3 comes back
DEFLATION is baaaaaccckkk
bring it on, short 20 /es from 1289. made back what i lost on my long 10 /es last week and then some, think i'll leave it for the now, looks rather tippy could drill a straight down hole ala fall 2007.
wish those idiots would outlaw shorting the banks again. that was the most funnest for the leastest i ever did have.
I still am of the belief that the Dow is connected to the real amount of US Dollars out there, even the fed's electronic / not in circulation money. My theorem is this, Gold was at 800 dollars an ounce or there about when the dow was at roughly 6000. Now gold is near 1600 an ounce, and the dow is at roughly 12000. Nothing has changed about the gold, it just takes twice as many US dollars to purchase it. In layman's terms, a dollar devaluation by 50%. So, the dow 6000 is the same purchasing power wise, as the dow 12000. The numbers go up, but the purchasing power does not. Now if the dow was at 12000 and a Porsche cost 5,000 and an ounce of gold was 50 dollars, there would be reason to celebrate. Right now, it's all smoke, mirrors and bullshit you can believe in.
When mister margin calls, the dollar reverts back up for bit and all asset classes collapse unless they are currencies. Since gold is a currency these days, its going to be tough to consider gold going below 1300 an ounce. Its all games like you say- until its payback time.
The DOW, dollars all an accounting scheme.
I'd rther be in Swissies, but dollars will do for this FALL. Or gold
Sure, keep the timeline short enough and you can justify any belief about price correlations.
Yet another glorious victory in the Government's War on Savers!
Time to promote Bernankybux to General of the Money for Life.
Pay the Treasury??? Why would anyone be willing to do that? I'd rather stuff my $ in a mattress...or better yet, buy PMs.
Negative interest rates just seem like a sly way for the Treasury to get a back door tax increase.
Exactly- hence cash under the mattress came into being.
Ben cannot print fast enough to reflate imploding economies and asset classes around the globe. Or save Europe. This is a credit based dollar, and the debt level is too high to sustain. Owing more debt in a deflation is a bad idea- even if you can print it. Perhaps people have heard of the minsky moment when the interest on the printed debt goes over the revenues of the country. Or Soviet Union.
Ben Sees the minsky maybe, and needs to drive bond rates lower or else everything goes tits up.
Negative rates just being a symptom of a crashing deflating economy where people will PAY you to hold their money- to save as much principle as possible. Or cash under mattress - but you could be robbed by some other entity besides US government.
I think the money supply will keep increasing: http://mises.org/content/nofed/chart.aspx?series=TMS
Bernanke has only two choices: (a) print and print and print, or (b) resign.
I like to keep a diverse portfolio of shoe boxes. One with silver, one with gold, one with USD, and even one (but smaller) with some reals. Which remindes me, I need to check the status of the guest bedroom mattress...