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Muppets Skewered: 10 Year Treasury At 1.999%
10Y Treasuries just broke below 2% yields for the first time in a month. Was it just 3 weeks ago that Goldman suggested selling bonds and buying stocks?
10Y < 2% once again...
Almost 40bps lower in yield since Goldman's prescient Muppet-mauling short suggestion...
meanwhile 2Y Bund yields just crossed under 2Y JGBs for the first time ever...
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Kermit on a stick.....mmmmm,m
wonder which way Bill Gross is placed this time ? I have seen many negative articles about his fund lately.
One man's junk is another man's junk.
Just do what the Goldman Prop traders do, fade recommendations made to clients.
why does everyone hate gubbermint nutsacks? they are the BEST contrarian indicator in history. I've made decent profits doing the exact opposite of what they recommend. I cant wait til they issue a short gold recommendation
Goldsack kleptoparasites must feed.
US treasuries are still MASSIVELY undervalued at these yields. What other instrument gives you a RISK-FREE 2% return!? Not only that but UST's are an unequalled hedge against potential economic turmoil.
If RISK-FREE means losing everying you've invested in a massive default/hyperinflation. Then yes it is RISK-FREE.
Default?? LOL. You STILL don't get it do you? The United States of America issues its OWN CURRENCY. This means our federal reserve can fill ANY GAP in foreign demand. And so much for "hyperinflation" - the 10 year just had another successful test of 2.4% (where I was an aggressive buyer), before plunging to more reasonable levels. It’s sad that doomer goldbugs continue to be totally ignorant of the fundamentals while savvy value investors are picking up bargains.
MDB, You should be buying bridges right now I hear they are going cheap. California is selling the golden gate bridge to meet budget deadlines. Heres your chance to really make some money. Brooklin bridge might go up next. Get in now!!!!
If ignorance could be made into a person, you would be that person.
Are you suggesting that T-rates are an indicator of inflation?
The FED can make T-Rates anything they want because they name the price! Are you freaking kidding me? The dollar can be destroyed at a 0% treasury rate and inflation will be raging everywhere!
BTW, I too was an agggressive buyer of treasuries in the 2.3-2.4 range precisely because I know the Fed cannot allow the rate to inch higher because at every 1/10th it goes up housig takes it in the ass and it is still all about housing here in the USA. Everything the Bernenk does is to try to reinflate housing but he cannot.
The deflated housing bubble has caused him to continue to create the Treasury bubble. He has no other avenue other than to hold down T rates because housing implodes if he doesn't and US governent debt service numbers explode and we hit a debt limit much earlier than the election, which he can't have.
Like Zeno's paradox there's no filling of the gap - printing currency to pay a debt always falls short of the initial principle (then there's interest expected too) so that the debt is by definition defaulted on.
Ahhhh yes...MDB. Anyone who says something is "risk free" is either a troll, idiot, or part of the systemic problem.
Hmmm, come to think of it, they can be all three.
MDB, when is Tyler and crowd going to kick you off ZH? The trolling lately has not even been that good.
MDB keeps ZH "fair and balanced"
The squid already owns MSM. There is nothing "fair" about that. By the way, fuck Murdoch.
For all we know, MDB *IS* Tyler...
Anything to keep the troops riled up, and MDB is usually really good, although sometimes he (or she) overdoes it a touch.
Anyway, MDB needs to stay around for comedy relief, mostly to see how many new ZHers bite.
I get a similar return just setting my FRN's on fire. In the same sense that my odds of winning the MegaMillions are nearly the same whether I buy a ticket or not.
it's all risk & no gain - real inflation is over 7% so a return of no more than 2% is 100% risk - you are assured of a loss of money and you are also assured a loss when treasuries default.
The USA is the CAUSE of the economic turmoil so investing in treasuries only makes more.
Rick Santelli on King World News
The thing is, Goldman Sachs predicts both things at once.
Muppets can't trade both sides at once and muppets don't get bailouts.
http://azizonomics.com/2012/04/08/why-goldman-sachs-cannot-be-wrong/
The analyst staff has really morphed into Goldman's propaganda arm under Blankfein, and they flood the world with plenty of empty propaganda ala Barack Obama and his in-house and media minions.
The goal remains the same between both bands of highwaymen...dupe the muppets...then take their money/vote/power.
ZH, on the other hand, is sounding the message of buyer beware.
So is Kermit getting skewered?... Or is he just in the pot with the water slowly being brought to boil? I keep losing track...
Kermit has what is known in the vernacular as "Stockholm Syndrome". It's the same mental disorder that leads Beaker to be the hapless victim of Dr. Bunson Honeydew's mad experiments.
I am really starting to feel bad for anyone listening to GS. Too bad, it is a lot of state pension funds with Muppets at the head that think that GS is the ultimate in investing advice. Again, more taxpayer money for GS :o(
This is a strong argument to defund gubmint at all levels.
Goldman, how much longer will people follow your stupid pumps and dumps. Your worse than the spam i get telling me to buy micro penny stocks.
Why should the 10 year bond yield go up? Here's why it should not.
1) There's no organic (non govt stimulus) growth. None. Less than none. That means no private demand for loans to drive the price of those loans up.
2) This is global. Money is terrified and it looks for the only place large enough to hide in. US Ts are so liquid that they can absorb that influx of scared money. Nothing else is big enough to do that.
3) The Fed backstops this parameter.
4) This is the new normal. This is a world where governments do anything to keep the wheels turning. If you fancy yourself a bond vigilante, you will be jailed.
5) If this yield goes up, the world ends. Period. 17 Trillion of debt can't endure a ramp in yield, and therefore there will not be one. If you try to create one, see item 4.
+2
I have been making this point for 3 years. Don't fight these turds. The Fed bought up 61% of treasuries in 2011. They will buy 100% if they have to... until they can't. But don't bet on "when". Just stay out of their way for now.
For the last 15 years, my most successful investing has been simply getting out of the way.
You don't get it - The squid is wonderful. Just fade the advise, make big bucks!
When GS said go long Russell 2000 at 820 or so, because it is going to 870, I laid in a batch of TZA. GS just took off that long Thursday, a little late.
RUT is 787 and falling as I type, and I'm a very happy camper. GS is a great contrarian indicator - please don't knock 'em.
GS should be on the pink sheets. Piece of shit.
Check out BBY. First after Dunn resigned stock up, now 2 bucks off the high. I think they figured it out. Box stores, except for food that we need no matter how deep the depression goes, are toast.
'Was it just 3 weeks ago that Goldman suggested selling bonds and buying stocks?'
Retail wisin' up. Muppets no more?
Goldman....a pimp salesman that gets paid by commission recommending every trade that can be made because they don't get paid on the quality of their advice...they get paid to broker the advice. They recommend the worst investments to their muppets then short the investments.
Maybe it's just me, but with Uncle Sam only a few years [or sooner] before outright default, exactly who besides the Fed would lend Chalky Soetero money at 1.999%? I don't see how anyone can expect a return at maturity.
http://vegasxau.blogspot.com
You answered your own question.
The Fed will be buying all treasuries at some point. There will be no default, there will be inflation instead.
RUMOUR HAS IT:-
SP500 TO CORRECT 10%+ OVER THE NEXT 2 WEEKS...
That cant be, everyone on Wall St media says S&P 1,400 is 'correct', and should really be MORE 'correct' and far higher. So how is -10% a correction? Simply cant be.
Hypothetically speaking, for the market to correct (sell off) 10% over the next two weeks, it would need a real big catalyst.
So, WHAT, do tell, is that real big catalyst ?
Earnings season could be a catalyst, but not to the tune of 10% sell off.
Spanish and Italian bond yields, maybe.
FTSEMIG.MI (Milan) down 4.98 today. IBEX down 2.96. Trading halted in big Italy banks.
Don't look, but things are going to haitch e double toothpicks across the pond.
http://www.youtube.com/watch?v=MMR5JVo21wQ
Moving right along..
Goldman nailing it again:
BFW 6:45 Sell Randgold, Mali Political Risk Has Increased, Goldman Says
BN 10:24 Randgold Climbs as Mali Junta Agrees to Transition: London Mover
If Goldman told its Muppets to sell bonds and buy stocks, then Goldman was selling stocks and buying bonds. The only question is, who are these lunatic 'clients' that actually continue to listen to these pirates at GS?
clients that are ready to take a small loss from GS trade ideas just to get connections and access to hot deals, friends with benefits.
I do hear they do give their clients the best hookers, but since that madam has been busted things have slowed down.
The same lunatic clients who listen to Larry Fink, I suspect.
...@SD1
who listens to the squid?..... your congressmen ,senators and presidents....screwed indeed.
It feels like Ben Shalom is playing his shenanigans right now.
Maybe he's just sitting in the corner playing with himself?
Playing his saxophone whilel America burns.
Soon a Doom and Gloomer like Bernanke or Geithner will tell us the world is going to end soon if we don't bail out these Banking Houses that never get a trade right.
Man I'd love to see $6 gas this summer, now that would be a REAL show instead of all this amateur hour bullshit....go ahead Ben and Timmay bail them all out again with $4-$5 trillion lets get some real action in this broke-ass country!
$6 gas would crush the tourism industry. Cab drivers would be irate. Airlines woulld get pounded.
Sheiks would buy more Rolls Royces, Bentleys, and Ferraris.
Dow Transport Index may actually go up in anticipation of Bernanke printing more monopoly cash, causing further divergence between valuation multiples and EPS.
http://www.infowars.com/5-billion-on-elites-hitlist/
Ummmm, as TD has pointed out on numerous occasions, the Muppets have been selling equity and buying bonds for almost a year...so who's the fool on the other side of the GS trade?
Brian Sack...until June.
One of these days I'm going to take the other side of their recomendations...but knowing mt luck that will be the one time they are right.
My name is John and I'm a muppet.
I predict many GS clients will be asking themselves this question soon: http://www.youtube.com/watch?v=-WWWTW1P8rQ
mmmmuuuuuuuhhhhhhhaaaaaaahhhhhhaaaaaa rich and stupid, cant make it up folks!
Spanish 10Y eyeballing 6.
It's got further to run. Let equities dead-cat bounce then rotate from there to buy the latest "OMG Europe is insolvent" episode.
@TheBenBernanke sez maybe I need to buy 81% ( instead of 61% ) of Treasuries so I can continue to make the fiat monies
Who the fuck buys this shit???
Maybe these GS client calls aren't about the clients at all. Maybe it's just cover for the various pension money gate keepers to unlock said gates so GS can offload into.. of course the juice for these fiduciaries to agree to compromise themselves like this would be well worth it I'm sure.
FREE SERGEY!
Will new new rally cry for main street become, "Are we men, or are we Muppetts?"
Seriously though, all the pundits are saying we are due for a 10% correction so the market can move higher again. Sorry, a correction is where you were wrong and were CORRECTED. The right answer is not the wrong answer you were corrected on. If the market is not supposed to be at its current level, ITS NOT SUPPOSED TO BE AT ITS CURRENT LEVEL ANY TIME SOON!
A correction today lasts around one week, if that. Priceline will be at $900 and the pundits will say the price is justified, because don't you remember the 10% correction in the stock price three weeks ago that lasted for four hours?
For three years the data has been saying that the stock market belongs at least 40% below its current level, yet the cheerleaders assure us that the market drops have all been corrections setting up the next bull leg.
You can't correct and then correct back above the level that needed correction with a couple months......it makes no friggin sense...
2+2=5
no 2+2=4
Yes sir you are correct, but 2+2=5.
Wait you just said I am correct, but then said 2+2=5.
Yes sir, 2+2=5 you are correct.
No 2+2=4, not 5
Yes sir, 2+2=5, correct
No look right here, there are two marbles and here are two more, count them and it equals 4.
Sir, we have been assured by our governing body that 2+2=5. We do not need to be presented with anything to the contrary. Our faith that our governing body is correct is unwaverable. Any further attempts at mocking our established faith will be met with harsh punishment. 2+2=5
The Wall St approved media says S&P 1,400 is very correct, and should be more correct at 1,500 or more...but the actual 'correct' for the S&P is around 600 at most. This is all just about trying to get broke retail to buy their pump, and its not working. It will be a bad temper tantrum day when they finally figure that out.
OT: But Anders Breivik is declared sane. Note that this is not necessarily applicable to his ilk.
http://www.google.com/hostednews/afp/article/ALeqM5gWP-ES4Pl3thV5dtGE5WEUM4cCaA?docId=CNG.d2bb9a7e8bf688e17518dc342eb755a6.2e1
I love how the article paints him as an 'extremist'; I wonder what they would label him if he had had a tan, or didn't like the odd beer now and then....
Personally, I would prefer he be branded insane, then he could spend what is left of his miserable existence being 'reconditioned'.
"Breivik, who has said being sent to a psychiatric ward would be "worse than death", wants to be declared sane, according to his lawyers, so as not to damage the political message presented in his 1,500-page manifesto published online shortly before the attacks."
Spending his remaining years in an east facing cell with a view of a minaret, having the Qu'ran read to him, eating lamb kebobs and watching reruns of 'Different Strokes' sounds to me like a fair deal for him, considering his utter worthless gutlessness. "Cruel but necessary'" IMO.
Breivik, in case this makes it through the many layers of thick fat on your unbelievably square head, your atrocities have had the very opposite effect compared to what you so fervently desired. Any reasonable, decent human being who read your ill conceived diatribe saw it for what it was: ideological sick on shag carpet.
Yep, when it comes to disgusting 'extremists' you might not be declared insane, but you're plenty stupid; I'll give you that. If there ever is a next time tough guy (Odin forbid), instead of attacking groups of unarmed innocents just save time and shoot yourself in the foot, k?
i was writing of this very thing almost certainly happening a few weeks ago
if the FED has a zeroInterestRatePolicy announced well into next year year, did people really expect rates to fly upwards due to "market forces"?
oh, yes! many did!
slewie did not, and made the argument for re-lowering the rates while they were rising and yes, even "peaking out"
ii asked several times if it were not the primary FED focus to make certain the damned Treasury needs get funded? and answered myself each time: yes! in spite of "man-dates", this is not yer fathers' T market, and the FED may have "room" to do very little else but stick w/ this primary focus
people going fuking ape-shit over every FED utterance and rumor, and all i said was look at the funding needs of the T and take a picture: if there is gonna be "QE", benzelbub is NOT gonna allow rates to "float upward" and he is gonna "print" primarily for the Treasury
in order to this, he can not play around with the politicos and banksters's ideas too seriously, imo
he has to stay focused on getting the paper funded for the deficit
this is not nothing; or "something to do along the cherry lane"
it is primary; it is real; and it is happening according to ZIRP policy, as pre-announced in 50-ft letters across the skylines
prez0 has a convention in the first week of september, which is the last month of the US FY, too
the "plan" seems to be to have the goobermint funded. the interst rates low, the market "afloat" and the checks?
that's right. BiCheZ! the checks will be in the mail!
whether prez0 can get us and himself there remains to be seen, but if that isn't the plan...
...what is?
they have just switched tactics
nope goldman suggested you sell them your bonds, and buy their stocks as their role as a market maker
i will pay you , to hold my money !!!
“Trust is gone, it now has to be earned.”
Rainbowwwww connectionnnnn!
I can't shake the feeling that this is all starting to look very early stage Weimar with the added possibility of the impact of repatriated reserve (imperial) currency. I know what the argument is for deflation at the meta-level, but these moves do not look good for the average Joe. At some point, the dam will break and all the parched ground on the hilltops isn't going to help the folk in the valleys.