There's Your Capitulation: 10 Year Bond Yield Surges To 3.54%, Highest Since May 2010

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Wed, 12/15/2010 - 15:53 | 809046 Sancho Ponzi
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'But see, it's all good, cause it's all based on the strong economy' 

Of course, because everyone knows Krugman only speaks the truth.


Wed, 12/15/2010 - 15:58 | 809076 mikla
mikla's picture

'But see, it's all good, cause it's all based on the strongly smelling economy'

Fixed it for you.  ;-))

Wed, 12/15/2010 - 16:04 | 809110 etrader
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Its Boyd Fowler  :->

Wed, 12/15/2010 - 16:03 | 809112 Mr Lennon Hendrix
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You did us proud, Cleatus!  Hey look Ma, Cleatus got some roadkill!

Wed, 12/15/2010 - 17:52 | 809589 Hubbs
Hubbs's picture

Silly chef, don't you know you'll need a square edged shovel to scrape that off the griddle?

Wed, 12/15/2010 - 18:06 | 809637 Problem Is
Problem Is's picture

Hey Jethro, that there looks like a gen-u-WINE Mike Huckabee, seminary college, dorm room fryin' squirrel...

Cleatus, get out the pop corn popper and let's fry this baby up...

Wed, 12/15/2010 - 15:58 | 809047 mynhair
mynhair's picture

Just buy the f&%#@ dip!

(in AUY)

Wed, 12/15/2010 - 16:10 | 809148 dlmaniac
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Where is Blythe Master when you need a raid in gold & silver the most?

Wed, 12/15/2010 - 15:53 | 809051 NoBull1994
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If this is capitulation, what will you call it when the 10 yr is 7%?  Oh yeah, armageddon.....

Wed, 12/15/2010 - 16:07 | 809125 Thomas
Thomas's picture

I think 4% will be the line in the sand.

Wed, 12/15/2010 - 16:31 | 809249 Bonesetter Brown
Bonesetter Brown's picture

Indeed, that's where we've bounced the last couple of years.

Wed, 12/15/2010 - 15:56 | 809056 Flore
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Ben has told to let it run a bit to Brian... The good old boys need a good start in 2011.

Wed, 12/15/2010 - 15:57 | 809063 Ragnarok
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More QE it is! Jan was right?

Wed, 12/15/2010 - 16:00 | 809084 Mr Lennon Hendrix
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TARP, STIMULOUS, QE Light, QE TWO, so what will the next one be called?

Wed, 12/15/2010 - 16:03 | 809105 RmcAZ
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Tarpulous 3.

Wed, 12/15/2010 - 16:04 | 809117 Mr Lennon Hendrix
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Starpulous Infinity.

Wed, 12/15/2010 - 16:36 | 809271 dlmaniac
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Hail Mary!!

Wed, 12/15/2010 - 18:09 | 809649 Problem Is
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Thu, 12/16/2010 - 06:01 | 811012 Mentaliusanything
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All in !

Wed, 12/15/2010 - 16:08 | 809133 jus_lite_reading
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BTW- According to my calcs, they're down another $700M today. Damn that strong economy! LMAO

Wed, 12/15/2010 - 16:38 | 809283 velobabe
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Wed, 12/15/2010 - 16:30 | 809237 I Am The Unknow...
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Qualitative Pleasing

Wed, 12/15/2010 - 18:10 | 809653 Problem Is
Problem Is's picture

Qualitative Fleecing...

Wed, 12/15/2010 - 15:56 | 809066 TheGreatPonzi
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End game for Bernie.

This is indeed the beginning of the end for Ponzinomics.

Wed, 12/15/2010 - 18:00 | 809622 Hubbs
Hubbs's picture

Time to start a war since all other solutions not possible. How to? Simple, default on foreign creditors (China this means you). China won't get mad, they'll get even, and then there will be no more shopping at Wal-Mart. Now that'll get everyone here in US pissed. And because the peasents in China will then have to go back to their farms, they'll be pissed. What a fine bubbly cauldron we will have.

Wed, 12/15/2010 - 15:59 | 809077 Id fight Gandhi
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With all the fed Pomo and bond buying it should be going down. Unless the world thinks our credit rating is fucked.

If the yield keeps goi g up, housing gets worse, credit cards, auto loans, plus our dollar is in the shitter.

It's like a pissing contest with Europe, whos more fucked in their economy.

Here comes the January market correction. Wheee....

Wed, 12/15/2010 - 16:04 | 809111 DavidRicardo
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Race-to-the-bottom is canonic Mellonesque liquidation.

Wed, 12/15/2010 - 16:34 | 809258 walküre
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you would think so.

consider the current USD paper sell off like a dump of stocks.

what doesn't make sense is the price of PMs over the last few weeks, especially gold.

we know it's manipulated to keep the people stupid and "glee"full .. but eventually the genie has to come out of that bottle.

Wed, 12/15/2010 - 16:05 | 809115 walküre
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"Unless the world thinks our credit rating is fucked"

Understatement of the decade.

Not only is US credit rating is fucked, US ability to raise capital is fucked beyond redemption.

Going broke in 1,2 max. 3 years.

Default is ON the table, folks.

Wed, 12/15/2010 - 16:10 | 809140 jus_lite_reading
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1-3 years is quite liberal. I doubt the US lasts in current condition through next July. Death spiral- period.

Wed, 12/15/2010 - 16:23 | 809208 walküre
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The longer it drags on, the more pain and suffering on the people. Not only American people but all people in all Western economies.

Too much fucking debt. Everyone, up to their eyeballs in debt. Private or public don't matter.

Banks are sitting on billions of dollars as if it was their own fucking money. They're not putting money back into the economy. Money is not flowing, means economy is going to hit a concrete wall eventually.

Proper Jubilee needs to be initiated.

Wed, 12/15/2010 - 16:49 | 809335 RichardENixon
RichardENixon's picture

How can they put it back in the economy? Who is in a position to borrow it? Every time I hear Obama talking about the economy he drones on about getting credit flowing to business and individuals again. They can't take on anymore! The goose is stuffed and the grain is coming out of his beak. It's time to make the pate.

Wed, 12/15/2010 - 17:39 | 809537 walküre
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The banks aren't making business loans, that's the problem.

2011 will be a year to remember. The cash needs to go somewhere. Equities are trading sideways, bonds are boring because nobody can afford to pay higher yields w/o destroying the currency further.. so the cash will resume a downward spiral until it bloats up.

Banks will take any deal that promises some decent return, any good revenue generating company looking to expand or do m&a will get clobbered with offerings for more cash.

There is nothing else to do with the cash.

Oh, forgot. PMs will explode to the upside as well as a result.

The people? They get nothing, will pay more and receive less.

But small business could grow exponentially as a result and start hiring quickly.

I see growth for the US economy, job creation but at the expense of price inflation and wage deflation.

Thu, 12/16/2010 - 01:22 | 810810 Bartanist
Bartanist's picture

Can you explain where the the jobs will come from. How will people who earn less be able to afford to buy more expensive things and are you implying that jobs will come back from Asia? Or, will we have more parasites working in banking, law, giovernment and think tanks?

Wed, 12/15/2010 - 22:27 | 810446 kubrick007
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what would be nice is a graph showing when debt is due or needs to be rolled by date, amt, type...doesn't even have to be super specific (like debt due each quarter for next 5 years or so). it would probably we very helpful.

Wed, 12/15/2010 - 16:00 | 809087 Gloomy
Gloomy's picture

I notice the NAV of PSLV is now over 12%. Wondering how high it will go when the jig is up?

Wed, 12/15/2010 - 16:01 | 809101 Gloomy
Gloomy's picture

Sorry, I mean nearly 14%!

Wed, 12/15/2010 - 15:59 | 809088 Misean
Misean's picture

We're gonna need a bigger boat...

Wed, 12/15/2010 - 17:04 | 809400 Alex Kintner
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And, you know, the thing about a shark... he's got lifeless eyes. Black eyes. Like a doll's eyes. When he comes at ya, doesn't seem to be living... until he bites ya, and those black eyes roll over white and then... ah then you hear that terrible high-pitched screamin'. The ocean turns red, and despite all the poundin' and the hollerin', they all come in and they... rip you to pieces. -- QUINT

Wed, 12/15/2010 - 16:00 | 809090 TWORIVER
TWORIVER's picture

TLT (90.83) next support at 87.

Wed, 12/15/2010 - 16:00 | 809091 erik
erik's picture

bond selling = stock selling = no bueno

Wed, 12/15/2010 - 16:05 | 809122 Mr Lennon Hendrix
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Go to FIAT!!!!!!!!!!!!!!!!

I repeat, GO TO FIAT!!!!!!!!!!!!!!!!!!!!!!

Wed, 12/15/2010 - 17:54 | 809604 jimijon
jimijon's picture

I hear they are coming to the US this January. Looks like a fun little car to compete with the mini... or is that the munis?

Damn all these interwoven terms.

Wed, 12/15/2010 - 16:00 | 809092 metastar
metastar's picture

Could it be dollar strength = US market weakness ??

Wed, 12/15/2010 - 16:10 | 809149 TWORIVER
TWORIVER's picture

US$ Index priming up for retest of resistance at 83.5 from current 80.25.

Wed, 12/15/2010 - 16:24 | 809213 Mr Lennon Hendrix
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I still do not understand how US market weakness still means dollar strength.

Wed, 12/15/2010 - 16:31 | 809250 A Man without Q...
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Unwinding of various carry trades.  The Dollar is still the global funding currency of choice, therefore as positions are unwound, there is a need to buy Dollars.  It's the last trick in the Fed's bag - they can always protect the currency by pulling lending lines causing a scramble like we had 2008/ 2009, but the trouble is this kills the banking system domestically as well.

Wed, 12/15/2010 - 19:14 | 809852 Amish Hacker
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Yes, I think this explains dollar strength. Bob Hoye makes a pretty good case that, historically speaking, the "senior currency" (in this case the US$) tends to rise as the SHTF. Still, it seems counterintuitive that the dollar can soar at the same time as bonds are tanking. At some point this trend will end, but we sure aren't there yet, judging by charts for TBT and UUP.

Wed, 12/15/2010 - 16:01 | 809099 shushup
shushup's picture

Stocks won't stay down for long as there are 2 large POMOs on Monday.

Let the stock front running continue.......

Wed, 12/15/2010 - 16:03 | 809108 Gloomy
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