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

Tyler Durden's picture

But see, it's all good, cause it's all based on the strong economy. And the suddenly dropping stocks completely confirm this.

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Sancho Ponzi's picture

'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.


mikla's picture

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

Fixed it for you.  ;-))

etrader's picture

Its Boyd Fowler  :->

Mr Lennon Hendrix's picture

You did us proud, Cleatus!  Hey look Ma, Cleatus got some roadkill!

Hubbs's picture

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

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...

mynhair's picture

Just buy the f&%#@ dip!

(in AUY)

dlmaniac's picture

Where is Blythe Master when you need a raid in gold & silver the most?

NoBull1994's picture

If this is capitulation, what will you call it when the 10 yr is 7%?  Oh yeah, armageddon.....

Thomas's picture

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

Bonesetter Brown's picture

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

Flore's picture

Ben has told to let it run a bit to Brian... The good old boys need a good start in 2011.

Ragnarok's picture

More QE it is! Jan was right?

TheGreatPonzi's picture

End game for Bernie.

This is indeed the beginning of the end for Ponzinomics.

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.

Id fight Gandhi's picture

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....

DavidRicardo's picture

Race-to-the-bottom is canonic Mellonesque liquidation.

walküre's picture

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.

walküre's picture

"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.

jus_lite_reading's picture

1-3 years is quite liberal. I doubt the US lasts in current condition through next July. Death spiral- period.

walküre's picture

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.

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.

walküre's picture

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.

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?

kubrick007's picture

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.

Gloomy's picture

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

Gloomy's picture

Sorry, I mean nearly 14%!

Misean's picture

We're gonna need a bigger boat...

Alex Kintner's picture

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

TWORIVER's picture

TLT (90.83) next support at 87.

erik's picture

bond selling = stock selling = no bueno

Mr Lennon Hendrix's picture

Go to FIAT!!!!!!!!!!!!!!!!

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

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.

metastar's picture

Could it be dollar strength = US market weakness ??

TWORIVER's picture

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

Mr Lennon Hendrix's picture

I still do not understand how US market weakness still means dollar strength.

A Man without Qualities's picture

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.

Amish Hacker's picture

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.

shushup's picture

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

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