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2 Year Drops To Fresh All Time Low Yield, Prepares To Breach 0.4% As Gold Touches On Fresh Record

Tyler Durden's picture




 

As Morgan Stanley pointed out earlier, the entire market now revolves around the insanity of one man. Just one man. That insanity has just taken the 2 Year UST to a fresh all time low of 0.4066%, and gold to an all time high of $1,320. Once the record divergence between stocks and bonds collapses, it will be one for the generations. Too bad not many may be left. At least gold "bugs" will have the last laugh over the paper bugs before it all blows up.

2 Year, fresh all time record:

Gold, fresh all time record:

 

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Fri, 10/01/2010 - 22:46 | 620189 trgfunds
trgfunds's picture

Gold bugs and dollar bashers don't understand this. The inflation has ALREADY HAPPENED. The currency has ALREADY BEEN devalued. How much did your grandparents pay for a house/car? We have already BEEN the bagholders. When what is coming comes, the inflation from the past 30 to 70 years will cause the dollar to revalue and equalize prices with wages and lower levels of leverage. There is a reason the fed fights deflation. They want prices higher, and it can't go on forever. There will be a reversal. Institutional and old/smart money have already begun massive capital outflows into the treasury markets, plummetting yield (See TNX). The equity markets will follow. Unemployment will rise. Wages will crash. Prices will decrease. The dollar will buy more assets. The people who have those dollars through the scams of the past 70 years (see elites) will buy up everything at lower prices pushing markets back into a generational reinflation bubble. This is the cycle that they bank upon. (see history).

Fri, 10/01/2010 - 22:52 | 620199 trgfunds
trgfunds's picture

What TPTB want you to do is read articles about the "death knell for the dollar" participating in the phony WWF play on a stage while the speculative premium comes out of all assets which are currently supported by them (see gold) right before your eyes. It is not a matter of if, but when. If there is a "death knell" anywhere it is the plummetting yield, which is the precursor for massive deflation of all risk assets. And yes, your gold will be treated as a risk asset when there is total terror in the markets. Please refrain from internet insults and respond with logical reasoning. I am only trying to warn those who are targeted as the next bagholders. Thanks.

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