Auction Which Sends US Debt To Over $15 Trillion Has Very Weak Reception; Drags Treasury Complex Lower

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Thu, 10/27/2011 - 13:21 | 1817826 LawsofPhysics
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Gee I wonder where interest rates might be heading?  Quick America (and the U.K.) refocus everyone back on the Euro.

Thu, 10/27/2011 - 13:33 | 1817867 Leopold B. Scotch
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But Benji's got that under control.  Why, he can do anything he says!

What a tangled web we have weaved.


Thu, 10/27/2011 - 13:47 | 1817948 Unprepared
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THAT's the big dilemma facing the global economy, in my opinion.

The global economy has to be permanently kept within a thin goldilock state of a thick blinding uncertainty between expectations of collapse and solutions.

Persistent Risk OFF: No potential growth - system collapse

Persistent Risk ON: first signs of growth - skyrocketing interests on suffocating debt levels - system collapse

Gone are the days when uncertainty was bad for the markets

Thu, 10/27/2011 - 13:58 | 1818003 dwdollar
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Persistent Risk ON: first signs of "growth" - skyrocketing interests on suffocating debt levels - system collapse

There, fixed it for you!

Thu, 10/27/2011 - 13:22 | 1817833 hunglow
Thu, 10/27/2011 - 13:40 | 1817916 iDealMeat
iDealMeat's picture

+1,  We all need a whole lot more of that stuff..

Thu, 10/27/2011 - 13:23 | 1817839 spiral_eyes
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i love it. the treasury bubble is being pricked by a pin... 

Thu, 10/27/2011 - 13:24 | 1817841 Cyrano de Bivouac
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Thu, 10/27/2011 - 13:31 | 1817845 slaughterer
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Where is the Fed going to get its deflationary nightmare to launch QE3? 

Thu, 10/27/2011 - 13:26 | 1817847 Eally Ucked
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The only question is - where the market gets all that money to buy any shit coming on the board?

Thu, 10/27/2011 - 13:37 | 1817849 DormRoom
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frack.. high US stagflation coming next couple of quarters.  I welcome the new crisis.  real economy trying to readjust, but government interventions, doing god-head (Goldman Sachs) work, prevents it.

distortions on top of distortion; pushing out future waves will amplify the problem, until ---

Future adjustments to rebalance real global economy, and not shadow economy,  will be epic!


sets up hyper stagflation in developed countries. hyper-inflation for BRICs.


Thu, 10/27/2011 - 13:29 | 1817854 SeverinSlade
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Mind boggling how completely stupid and ignorant people are with regards to what is going on with currency/economics.

Thu, 10/27/2011 - 14:05 | 1818025 NotApplicable
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Not really. There's been a century of government schooling to make sure there's hardly anyone left alive with any sense. Which of course, is the danger of immortal institutions. Mortals can only keep them in check for so long before they are replaced with younger mortals without sufficient background to understand the danger.

Thankfully, I live where home-schooling is well protected by an entrenched Christian population, that will under no circumstances give up the faith.

Thu, 10/27/2011 - 13:31 | 1817855 jcaz
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Hello China?  You guys SURE you don't want some Treasuries?  Please?   Umm, where were you guys today? 

-Timmy Geithner, Master Bond Salesman

Thu, 10/27/2011 - 16:24 | 1818576 blunderdog
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Backed by the full power of faith in the usa gummit something like that.

Thu, 10/27/2011 - 13:29 | 1817858 Trad3er_1337
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Anyone here getting the feeling that today is overdone?? So extreamly bulish... Feels like this things about to pop...

Thu, 10/27/2011 - 13:38 | 1817902 Randall Cabot
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I'm buying FAZ at the end of the day.

Thu, 10/27/2011 - 13:31 | 1817868 afdestruction
afdestruction's picture

Man, my TMV holding looks pretty sweet today...

Thu, 10/27/2011 - 13:32 | 1817870 Tsar Pointless
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Tick tick BOOM!

Coming to a United States of America near you!

Thu, 10/27/2011 - 13:32 | 1817871 tim73
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Pendulum might be starting to swing back from Europe to USA and it is a big wrecking ball. USA could be facing the end of the road. There are no other options left except massive printing of money.

Thu, 10/27/2011 - 13:32 | 1817872 slaughterer
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China is saving up for the ESFS backstop.  Cannot afford US Treasuries anymore.

Thu, 10/27/2011 - 13:38 | 1817901 LawsofPhysics
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No, China has plenty of treasuries to sell.  Just better do it quick.

Thu, 10/27/2011 - 13:33 | 1817873 Mr_Wonderful
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This stock rally has been sending very strong signals that no more QEs are needed. This is very good news for the FED since it is practically bankrupt, being leveraged 50-60 to 1 against its capital. As bonds tank the FED is quickly being rendered technically insolvent (although it quietly adopted an accounting change last January, allowing it to book any losses as a liability to the Treasury) so it can start selling part of its portfolio, in other words contracting the money supply. It´s practically forced at this point.

Thu, 10/27/2011 - 13:37 | 1817895 LawsofPhysics
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LOL! yeah, good for the Fed, bad for those liable for their losses - The American taxpayer.

Thu, 10/27/2011 - 14:13 | 1818048 earleflorida
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let's look at the three options shall we:

Social Security

Health Care/ Medicare/ Descretionary


me thinks its more guns, and less butter,... after all a bad diet effects your health and your longevity - a two fer

answer:  let them it mud-cakes, their quite popular in Haiti  

** Defense trumps All Logic** 

Thu, 10/27/2011 - 19:49 | 1819175 optimator
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"Guns will make us powerful, butter will only make us fat."

Reichsmarshall Herman Goering

Thu, 10/27/2011 - 13:40 | 1817914 RobotTrader
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Just watch what happens to stocks

When just a fraction of that "hot money"

Rotates out of fixed income and "flees" back into stocks.

Where will the Dow be after we have 40 consecutive weeks of stock fund inflows and unemployment is back to normal at 5%?

Just check out the charts of INTC and WMT, somebody loves those dividends.

Thu, 10/27/2011 - 13:43 | 1817930 jdelano
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unemployment back to normal at 5%

right around the time the retirement age moves to 70 in italy.....

Thu, 10/27/2011 - 14:07 | 1818030 Incubus
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the official retirement age and the age you get to retire at are two different things.


Officially, it's there to get dumbasses to invest their lives into a system.  You work until you die, or until you can't work anymore and you're out on the streets.

Thu, 10/27/2011 - 13:45 | 1817942 LawsofPhysics
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So you are making a call for 5 % unemployment.  By when Robo, come on don't be shy, make a forward prediction that everyone can trade on. You crack me up, no shit we all love dividends, tis the season.

Thu, 10/27/2011 - 14:21 | 1818082 earleflorida
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yep,... if i recollect correctly - it was the utilities [over-leveraged] dividends that brought about the "29" crash

but were talking apples and oranges,... right? 

Thu, 10/27/2011 - 13:49 | 1817961 faustian bargain
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'normal'...I don't think that word means what you think it means.

Thu, 10/27/2011 - 13:48 | 1817959 Mr_Wonderful
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Well, the stock market, the bond market and commodities are all sending a very strong plea for the contraction of the money supply. I don´t see how it can be read otherwise. These are signals of rising inflation and interest rates. It can´t be good for an economy that is 70% driven by overindebted consumer spending.

Thu, 10/27/2011 - 13:54 | 1817991 LawsofPhysics
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No it isn't.  So the big question is, is the world economy broke or not?  Are you suggesting sovereigns might actually revert away from the global economy?  Regardless of the money supply, it takes resources and energy to keep the world economy "growing".  Infinite growth on a finite world, not going to happen.

Thu, 10/27/2011 - 14:07 | 1818031 Mr_Wonderful
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It´s probably technically broke. As you have seen in recent years paying debt has somehow become optional, at least for select players. It´s a very dangerous sign from overindebted systems in terminal decay. The system has definitely been getting increasingly unstable. The stock market has crashed by 50%, twice in the last decade. Now we have yet another wild bear market rally. Looks very ominous to me.

Thu, 10/27/2011 - 14:32 | 1818114 LawsofPhysics
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Agree.  I bought about $1,000 worth of rubles when I was in Russia in 1996.  15 years later that fiat is worth almost $75,000.

No question who is winning the race to the bottom.

Thu, 10/27/2011 - 14:54 | 1818211 Mr_Wonderful
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Really? What about the three zeros they chopped off in 1998?

Thu, 10/27/2011 - 15:29 | 1818361 LawsofPhysics
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If it wasn't, then it would be closer to 2,500,000.

Thu, 10/27/2011 - 15:39 | 1818389 Mr_Wonderful
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I hope you´re not deep into the Iraqi dinar redomination scheme.

Thu, 10/27/2011 - 16:36 | 1818622 LawsofPhysics
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No, work with some folks in St. Petersburg.  They "get" capitalism. Same as it ever was.

Thu, 10/27/2011 - 13:52 | 1817974 spartan117
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Holy crap, the USDX is REALLY getting butt raped here. 

Thu, 10/27/2011 - 15:08 | 1818272 Living_Stone
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"Holy crap"

"butt raped"

What are you a mormon?  Come on.  Out with it.  This is ZH!

JESUS FUCKING CHRIST, the greenback is getting skull hammered.  <fixed>


Thu, 10/27/2011 - 16:02 | 1818495 pods
pods's picture

Doesn't the USDX know NOT to go canoeing where they play banjo music?


Thu, 10/27/2011 - 16:01 | 1818490 IQ 145
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Nice try, Tyler; but the simplest explanation is always best; and in this case, most accurate. Treasuries trade down when the Stocks rally. It goes like this; Risk  On, Treasuries Off. Disclosure; ahead $9,000 per contract, or %300 on my investment; on my short sale of the Long Bond on the CME on Oct.3thd. from 144-25; posted here on the day I put it on. You can participate if you wish, they have a long ways to go down.

Thu, 10/27/2011 - 16:05 | 1818511 pods
pods's picture

Ummm, that is not disclosure, it is bragging by an insecure person.  Of course most already know that, IQ 145.


Fri, 10/28/2011 - 04:49 | 1820064 Grand Supercycle
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DAX monthly chart at blog shows recent bullish candle revealing aggressive short covering rally enclosed within big picture bearish pattern.

Bullish USD weekly/monthly and bearish SP500/DOW monthly
charts will eventually ensure a violent reversal of equity uptrend.

Do NOT follow this link or you will be banned from the site!