Yet another supporter of the huge imbalance between bond supply and demand emerges, this time it is the ever controversial Nassim Taleb, who speaking at a Moscow conference today, the same place where Roubini said to get the hell out of the dollar, said that "every single human being" should bet USTs will decline "citing the policies of Federal
Reserve Chairman Ben S. Bernanke and the Obama administration."
It’s “a no brainer” to sell short Treasuries, Taleb, a
principal at Universa Investments LP in Santa Monica,
California, said at a conference in Moscow today. “Every single
human being should have that trade.”
Taleb said investors should bet on a rise in long-term U.S.
Treasury yields, which move inversely to prices, as long as
Bernanke and White House economic adviser Lawrence Summers are
in office, without being more specific.
Zero Hedge has observed previously the roughly $700 billion demand shortfall in 2010 UST issuance which can only be filled by rates surging substantially higher. The alternative, as we have discussed extensively, an engineered stock market collapse. Today is looking pretty good so far in that regard. Then again, a race to the bottom for currencies and for general asset risk is probably not the stuff efficient investment decisions are made of.