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$40 Billion 3 Year Auction Closes At 1.437% High Yield, 3.13 Bid To Cover Second Highest In Past Six Months
- $40 billion 3 Year closed at 1.437% high yield, 15.66% allotted at high; 1.403% median; 1.34% low
- WI last traded at 1.447% at 1pm
- Bid To Cover 3.13; previous 2.83, average 2.98
- Primary Dealers bid 67.28% of total competitive bids of $124.9 billion
- Indirect take down: 51.84% versus 53.53% average
- Indirect hit ratio: 75.67%
A chart of recent 3 year total notionals and Bid-to-Cover ratios. Today's 3.13 BTC was the second highest in the past 6 months, with just November's 3.33x greater.
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I was a buyer. Dug some change out of the couch and stepped up to support my uncle in his hour need.
Don't let Uncle Sugar hear you! If he finds out we could muster the money to buy some of his bonds then he'll just take it from us with new taxes and fees! SHHHHH!!!!
Too old school, going through the messy process of taxes and fees. The new normal is the forced conversion of your IRA/401(k)/pension to a government guarenteed annuity.
I'm backing you who is backing me who is backing you who.........well, you get the picture.
I'm really hoping they slow boat that and start with it being "voluntary". I got my dad agreeing with my economic and future projections but he is not convinced that they will take his retirement. He thinks they wouldn't because in his mind it would start a revolution. He's close to the tipping point of retiring and getting out of the system, them slowly marching on that road trust might be the tipping point.
Love my folks but would hate to have to support them after Uncle Sugar robs them.
Denial is what's keeping this Ponzi going. To accept that it has gone too far would require your Dad (not beating up on your Dad specifically) and millions of others like him to actually "do" something about it. I'm certain that the "revolution" thought has been adjusted downward numerous times over the past 24 months as the thieving has progressed. Each time the line is drawn and crossed, it is redrawn further away, lest action be forced upon us.
You Dad (and my remaining living parent as well) is doing the same thing everyone else is doing, assuming that they can get "out" before the whole shooting match comes down around their ears. So they trot out every excuse in the book to do nothing, thus assuring all of us that more of the same is just around the corner.
The problem is not the Ponzi, it is our acceptance of the Ponzi. Our inaction is actual consent to the status quo.
He actually taught me that not taking an action is a choice. I can understand it from his eyes. He worked and put the money away and expect a certain life, to retire with his 401k a small pension and social security. Now he was his son telling him that his dream is a lie and that he has to face a harsh reality. Like many he feels that he played by the rules so the rules won't change mid-game.
Change is painful. I understand this, to realize a lot of what you spent your life on was a lie. But what really got me was he understood what I was saying was true but he desperately holds onto the dream when he rationally knows it's a total lie. It's delusional. I can't judge him, I don't know what kind of emotional baggage I would have if I was 30 years into the system to find out it was all a scam. Hell he even told me "I'm not in the best health so I got what 10-15 years, the system might last till then"
This experience even shows how people who won't accept it hold those back those who do. My mom is on board and understands what I'm telling her (but still demands I finish school) and would bail, but won't without my dad of course. Through this experience it shows me change is impossible till all pretense of the ponzi economy is gone. Not until we have nothing will we be able to even think about rebuilding. I'm not more certain then ever that America is going all the way to the bottom of the 3rd world.
Every good (self) lie, deception and confidence games has some basis in reality (or at least the perception of reality) that makes it seem plausible. So your Dad is grasping what he feels is plausible about his (in)action, which supports his inaction. It's this positive feedback loop that is the basis for denial.
My mother was a trained social worker, with an extremely good grasp of what makes people tick and how to help people see themselves in a manner that gave them the courage to make changes. And yet her life was always a terrible mess, with drama after drama, problems around every corner, always with her blinding barreling down the road towards the next one.
Her education was a severe handicap for her because it enabled her denial. Because she was trained to see other people's emotional and psychological problems, she was able to weave fantastic webs of justifications and rationalizations for why she did or did not do this or that. I had found this often in the more highly educated, the terrible hubris to believe that they are above mere human mistakes, or at least can see them coming a mile away. Also, the more highly educated have so totally bought into the system that to question it too closely would require questioning themselves, not a likely prospect in a society that believes you don't fix what ain't broke.
This educated denial (my own term, I've never seen it anywhere) enables educated people to completely dismiss wide swaths of information with the flick of the hand, secure in the belief that they know better. I have found over the decades that the poorest people have a better grasp of reality and more quickly see through official lies and misconduct, though it's usually expressed in such a way as to appear as a cynical attitude. The people living on the street can see the bull shit somewhat easier because for them, survival dictates they do so and do so quickly.
In my experience the people who have studied psychology in university tend to be the craziest people I have ever met. It's almost as if they were trying to find out how they were wired.
In university now I have heard several professor broadly proclaim "We won't have a depression because we have learned so much form the past making it impossible!" and things to that effect. The education system breeds a very high level of hubris.
When a person is close to that survival line I think the lizard brain actually helps. It knows if it indulges in those wild fantasy it could end up dead. It doesn't have the material buffer to indulge flights of fancy.
In my father I see it more as if he acts he makes it his reality. Meaning if he accepts my plan to get them and their money out that he is giving up all hope in his dream that he has had for decades. The dream must surly be bright to cling to it as one goes over a cliff. Though for him I'm hopeful since I'm working on him like a battering ram and have made progress from where I started where he wouldn't even talk about it. But I could not do that method with others because they would just stop talking to me, Mr. Negativity :)
"Meaning if he accepts my plan to get them and their money out that he is giving up all hope in his dream that he has had for decades. The dream must surly be bright to cling to it as one goes over a cliff."
The answer is very simple. It is the psychology of prior investment, which is a mental and emotional anchor for many people. It's what keeps people invested in dead end jobs and unworkable life styles. It keeps people tied to marriages and governments long after they both should have been abandoned. False hopes (another way of defining the psychology of prior investment) tie people to impossible situations.
"But I've put so much into that (stock, wife/husband, belief system, way of life, lawn of weeds etc) I can't give up now. If I just hang on a little while longer, maybe it will all work out."
slot machines, hell , gambling is the same way
I dated a grad psych student once. Beautiful woman, but absolutely bat shit crazy. Quick to weave scenario for everyone else's flaws, but refuses to deal with her own.
My dad's the same way...sitting on a state pension for his 30 years or whatever and he just shrugs and crosses his fingers.
He's abandoned his lifelong love of Demoncraps and agrees now that they are all fucking crooks. But he cannot bring himself to find a way to realize the cash in that pension or to address what will happen if the state can't pay it.
I have been telling him to buy freaking gold and other things like that, but it's like it's been his whole life in this system and it's always worked out the way it was promised. Too much inertia, methinks.
I'm going to discuss with my acct tomorrow about a cashout of the 401s; but I'm torn between the seizure outcome and the inflationary blowoff. Pension/401 seizures are certainly an option, but if we look at Argentina, it seems that the level of desperation needs to get beyond initial devaluation to get to the point of seizure.
It's my humble opinion they might try to seize the 401ks to keep the dollar propped up. Using that as collateral would buy the dollar some time for them to continue their looting. The problem they face is when the dollar dies the gravy train ends. I might be wrong but if I was them I would take the 401ks before doing a full inflationary hellstorm. Have to squeeze every ounce of value out of the Americans after all.
Was talking to a friend of mine I told to look at PMs and guess he cleared his 401k on worries of what the gov might do and jumped into PMs.
“Treasury bonds are certificates of guaranteed future confiscation.”
Franz Pick - at the start of the global fiat currency era.
“Treasury bonds are certificates of guaranteed future confiscation.”
Uh-huh. I remember hearing that frequently in the early eighties. Folks who ignored this wisdom and bought the 30-yr. are still cashing in their double-digit, non-callable coupons.
Luv me my bearer bonds!
Bid: People's bank of China
Cover: GS, JPMC, 33 liberty st
Pretty simple stuff folks
Is it possible money that use to be in repo's, ie, shadow banking system no longer want to lend short term with banks and thus, have nowhere else to go, thus, they are the buyers?
an example would be what does xom and procter and gamble do with short term money
just a thought
No doubt, doing the right thing at the right time is generally a formula for success...
Awesome username. *hat tip*
What happened to the 150 billion worth of bearer T's in Italy?
What about the fake Gold/tungsten?
Really - what a bunch of killjoys. This market is going to the moon!
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