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As Obama Says He Will Veto Any Republican "Cut, Cap" Deficit Bill, Long Bond "Dragged To Slaughter House"
Just because someone is dead set on making Apple the only flight to safety in the world (and Gold of course, but unlike the iPad one can't really eat this particular tradition), around the time (10 minutes ago) Obama threatened he would veto the Republican proposed vote to raise the debt ceiling coupled with a cap on spending and balanced budget amendment to the constitution, the selling off spilled over to Treasurys, which as the chart below demonstrates are broadly lower across the curve, but most emphasized at the 30 Year spot, which as Russ Certo says (see below) is being "dragged to the slaughter house." Alas, judging by bank trading today the 2s30s steepening is completely irrelevant for bank stocks, for the simple reason that i) nobody needs any new mortgages and ii) nobody actually pays their mortgages. This is the second day since last week in which there is coordinated selling in stocks and bonds. Expect much more bond weakness with each day there is no bond deal.
Commenting on the move, Gleacher's Russ Certo told Bloomberg that “vigilantes make a symbolic statement” about debt ceiling negotiations. "It’s the issue most sensitive to government ineptitude” Certo says of 30-yr bond "It’s all about the long bond as the 10-yr is being dragged to the slaughter house." We couldn't have said it better.
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We were shown the way to dry land decades ago. Too bad we didn't pay attention.
Or else Obummer will veto your sorry ass. What a muppet...
To Barack Insane Obama "bipartisanship" and "compromise" mean "Give me what I want or I'll throw a teleprompter tantrum!"
Any bank who buys US bonds now or in the next couple of years should realize they are buying crap which they'll lose.
The FED will be buying them back for the next decade if the US doesn't devault by then.
Come now, SD, let us feel compassion for our poor little banker, who, upon surveying the investment landscape, sees , upon all horizons, a vast sea of worthless dreck... alas, he must continue the charade, for the only gold he can find to buy is paper gold, and if he were to buy physical, what to do with it then? His only hope, the poor idiot, (who in high school caved in to family and counsellor pressure to take college prep courses instead of welding and auto shop, thus leavig him bereft of any real skills) is to keep playing the game, with one eye peeled for the greater fool, and with one hand stuffing physical gold under his personal nattress, which will only make him, bless his little heart, a convenient target for armed home invaders once there are no police to protect his gated community...
"... a vast sea of worthless dreck..."
Poetry, that.
Obummer wants a default. It is his only salvation. He figures that he can never be impeached, so damn the torpedos, full steam ahead with his "Change".
Selling the long bond on the news assumes the price of the long bond had built in passage of a balance budget amendment, right?
Does anybody with half a brain believe that?
From the mouth of the (previous) man behind the curtain (Rahm): "You never want a serious crisis to go to waste. And what I mean by that is an opportunity to do things you think you could not do before."
Read more: http://newsbusters.org/blogs/seton-motley/2008/11/21/media-mia-emanuels-crisis-comment#ixzz1STwwnBLl Soon to be released by Wikileaks from a voicemail nabbed by NOTW: "...Bomber- it's me, Rahm. Dude this is a crisis! Don't f*ckin' waste it." The Bomber-"Haha. How'd you get to be the smart one? Wait a second, I can make it a REALLY big crisis if I promise to veto anything that curtails spending. Call ya after I f*ck this up to the maximum. Hey, dude, you get that short position in long bonds in Hillary's account yet? Gotta go."Dragging is too much work up the ramp to the killfloor at the top of the meat plant.
Just use a cattle prod. ZZZZT!
A cattle prod doesn't make that sound. The only sound I've ever heard a cattle prod make is, "Moooo". Followed by a swift kick.
gh
Cut the debt ceiling! Begin paying down the debt. Let Moody's come out with an even more intellectually vacant argument that cutting the number of bonds outstanding is somehow bearish for UST. Want to maintain the credit rating? Start cutting your debt. That's what Moody's advises companies to do. Should be no different here.
If you're a republican and you buy this bullshit of cap and cut, you probably still think Iraq had WMDs.
This is not going to end well.