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$40 Billion 3 Year Auction Closes At 1.404% High Yield, 38.42% Allotted At High
Buy bonds, buy stocks, buy gold, buy politicians, buy district attorneys, buy CNBC anchors, buy anything that is or isn't nailed down. Buy everything.
- Yield 1.404% vs. Exp. 1.419%
- Bid-to-cover 3.33 vs. Avg. 2.82 (Prev. 2.76)
- Indirects 68.5% vs. Avg. 52.77% (Prev. 48.97%)
- Indirect bid-to-cover: 1.39
- Alloted High 38.42%
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Interesting...
So have the Japanese come in heavy because they're serious about the analogy between their lost decade and our current situation, with their expectation that our UE rate will go over 13% soon? So that these yields might look good in a couple of years? Thank goodness the Shills (I mean, Directs) are there to go through the motions.
Well ...somebody is buying equities...
Except real estate (physical). That's still not prudent...
this is called inflation.
At the moment, the reality is that no one is acting like this is inflation. And when enough people act in a certain manner, at least for a short period of time, their actions can warp reality to reflect their perception of reality.
For the past 8 months, perception (whether real or artificially induced) is that equities need to go higher and interest rates need to stay low. As insane as we might think that is, the reality is that for now, this is real.
Since the Virtual Reality Fractional Reserve Note (thanks MsCreant, that term's a keeper) isn't based upon anything "real" it can take on any form "we" want it to take.
It's well past time we all picked up for review a few books on alternative realities. Or at least fire up an old Star Trek movie (anyone with THE BORG in it is always appropriate) for a refresher course.
My theory for keeping equities high is to prevent China from buying companies in truckloads at fire-sale prices using their US Treasuries pile. They could then use the new IP property to freeze whatever US company is left in endless litigations.
I'm probably wrong though...
God I wish you were wrong...
my theory the fed is letting gold soak up excess dollars and then will trash gold forcing a re-think on the dollar. In the meantime gold goes to the moon . everyone is in. The clever sell out and buy razorbaldes. Of course the fed may lose control. but lets face it even in the great scheme of things chinas 2 trillion reserves is 'not alot'. China could get roasted along with the other goldbugs. Timing will be everything. Oh and inflation :-) is sweet for the people that bought razorbaldes.
High-debt REITs are outperforming most of the Tier 1 and many T2 gold mining stocks... Funny to watch; guess there's an argument that the Gov't doesn't have the miners backs.
It will be interesting to see the 10 year.
Just another day where everything goes up, including even treasuries, as the dollar tanks - the new common sense is a lack of common sense... I really must have somehow stepped through some dimensional portal somewhere, it just doesn't get more bizzaro-world than this. For this to happen once in a great while - fine, but happening weekly and daily, that's too much. I also don't want to give Ben and Timmay the credit for screwing things up this bad, it would take a lot of skill to do so. I've fallen into a bizzaro world ridden with bubble-mania. People don't chase investments that then result in bubbles, they just chase bubbles, knowing they will be perpetuated and fully backed by the fed.
That dimensional portal you've stepped through has been busy transporting many of us to another world. Unfortunately, I have had a very hard time divorcing myself from rational thinking side and as a result just can't predict these bizarre moves.
"Indirect" is nothing but stealth QE.
Thank you, Gordon. That needed saying.
Indirects 68.5% vs. Avg. 52.77% (Prev. 48.97%)
Looks like the low participation by retailer buyers and other countries contributes to the exceptionally low volume. Low volume allows the HFT bots to create a mirage market. Almost all fund traders know they are riding intervention cash from Treasury trade ins in the open market.
This will end badly for all of us-
BUT, keep in mind the FED and the wealthy need the time to get their holdings onto the high ground for the impending collapse of the pyramid system. As long as the right people and systems have wealth-and a substantial portion of it, then the rest of us can descend into a feudal oligarchy.
In the meantime, expect to be bait and switched by mini-corrections and mysterious run ups.The banks and traders are pickpocketing people with shortsqueezes until they all give up. Then,on frustration like now, as they pile into real assets like gold,crude,real estate watch how the dollar will suddenly turn on everyone and capture the inflation market. Goldman and the US FED can insidertrade this system into perpetuity unless Congress gets it's head out of it's ass and protects the people for a change.
Anyone watch how UUP needs more shares? Does somebody need to get into a dollar fund badly or does somebody need more UUP to short? Who knows.
BB - "Ok, we will buy those shitty MBSs nobody else will and you buy Treasuries - do we have a deal or do we cap your bonuses?"
As of 1454 today it seems the mission is to be accomplished exactly 7 months after March 9, 2009: GETTING THE S&P 500 ABOVE THE LONG-TERM DOWNWARD TRENDLINE (1,091.5), SO THAT EVERYONE IS FORCED TO CAPITULATE AND DECLARE THE BEAR MARKET COMPLETELY OVER.
I got into gold in June 2007. Not to be clever but out of desperation as I saw few alternatives ahead. When you've put a considerable amount of your net worth into one thing you certainly at first feel nervous. But I knew then and again at $900 an ounce and again this morning when I bought again it was the right thing to do. You can't beat mined physical gold. I believe that currently it represents a one way bet. When will I sell? I will sell when I need to to or the market dictates that I should. Certainly I wouldn't be surprised if I hold for 5 years and even then 'if' I sell I will be happy that one of my ounces can buy what it can buy today. Of course the greatest benefit of all is if I am wrong on my view on every currency I spent buying gold with I can sell gold back into that or any other currency I wish. There is rarely no other asset class like it.
I wish you all happy trading, dealing or whatever you can do to retain your wealth and in the meantime I am happy to stick with a useless gold metal that for some bizarre reason has shown over thousands of years to a store of wealth. what will the dollar in your pocket be worth in 5 years?
This will be like watching two runaway locomotives speeding towards each other at a ridiculous speed. It won't end well.
If I was a betting man and was a pure US centric as many people are (all 33% of world GDP of you) I would bet the dollar wins. Gold gets crushed and I am back to square one on the wealth trail. However 2/3 of world GDP are now against a dollar win and interestingly real momentum is now bieng built from within. The big mouth American media have had thier day thanks to the internet (stupid idiots thinking they can control the sheeple) the majority now want a change. Of course Goldman could pull off another big scoop and drive gold lower but I feel that they have lost control and panic is about to set in. It is no longer traders building the gold price, it is people with huge vested interest in collapsing the dollar. The question of course is what song will the Mockingbirds be singing next spring.
For all the gold bugs... What would happen to the price of gold if policy moved from absoulutely idiotic and corrupt to mildly right?
If policy went the right way, there would be no 'price' of gold, not in US dollars. Gold would BE the price.
Yawn. Business as usual. What's the problem here? /sarc off/
I would love to know, in this low volume environment, who exactly owns all these equities and treasuries. The NYSE just holding them? Goldman? The FED?
This is not meant to be rhetorical but ... at what point do we get to hold one of these yahoos responsible?
Probably not until end of 2010 or 2011 when it all comes crashing down. There will lots of blame being spread around. Desperation and anger will be rampant and that's when things will get ugly for the yahoos :)
We already hold these yahoos responsible. If you're talking legal system perp walk bend-over-in-the-shower-for-a-surprise doing my time in the license plate shop responsible, in my humble opinion the answer is never.
I spent some time over the past weekend conducting some research on other countries where gross corruption existed and then reforms were instituted. I hate to tell you this but other than some stupid or greedy patsies and innocent bystanders (which I describe as anyone who rushes into the bank after it's been robbed to grab a few rolls of quarters only to be beaten nearly to death by the 26 cops waiting outside for the big collar) no one of any significant consequence was ever brought to trial and actually convicted.
What's that you say, that I only studied underdeveloped banana republics and South American dictatorships and what's going on now in the USA isn't comparable? I agree. What's happening now in America is orders of magnitude worse and all but guarantees no one will be "brought to justice".
But that's just me. I've stopped drinking the false hope Kool-Aid some time ago and the rage is subsiding a bit. Now I'm just concentrating on taking care of what's important in life.
In order of importance, family, immediate local community, larger surrounding community, state, region and then country. Since I'm still working on family and immediate local community, I've got a long way to go. But the winter community garden is coming along nicely.
I agree. I've given up on justice and anger. Now I accept it as part of this failed experiment we call life. You can't save people who don't want to be saved, all you can do is protect yourself and the ones you love.
I have not given up on justice, after just completing "Term Limits" a guy can dream.