The dollar has been the “Coca-Cola of monetary brands,” says James Grant, editor of Grant’s Interest Rate Observer. But even the best of brands can be lousy investments.
October 22nd, 2009 | Chris Mayer | 4 comments | ContinuedAll Posts Tagged With: "US Treasury"
New Trend in the Market: Sell Bonds and Buy Commodities
Gross finishes with this advice: “Bond investors should, therefore, confine maturities to the front end of yield curves, where continuing low yields and downside price protection is more probable. Holders of dollars should diversify their own baskets before central banks and sovereign wealth funds ultimately do the same.
June 9th, 2009 | Dan Denning | 10 comments | Continued
Fed Will “Monetize the Debt”
Meanwhile, the US Treasury is borrowing hundreds of billions’ of dollars in order to close the gap between what the US spends and what it receives in taxes. Even if the Chinese are willing to fund that borrowing in the very short term, it just pushes forward the inevitable day…
May 29th, 2009 | Bill Bonner | 3 comments | Continued
U.S. Trying to Auction Off $162 Billion in Debt
“The US is not alone in facing a deficit crisis,” reports the U.K.’s Telegraph. “Governments worldwide have to raise some $6 trillion in debt this year, with huge demands in Japan and Europe. Kyle Bass from the US fund Hayman Advisors said the markets were ‘choking on debt’”.
May 27th, 2009 | Dan Denning | 2 comments | Continued
Mistakes Made By America Are the Same Mistakes That Empires Make
When a company goes broke, analysts always say: ‘it made mistakes.’ But people always make mistakes. One invests too little. Another invests too much. One innovates too little. One innovates too much.
May 14th, 2009 | Bill Bonner | 1 comment | Continued
Begging the Question: Recovery to What?
Does it mean that American “consumers” (so-called) are awaited momentarily in the flat-screen TV sales parlors with their credit cards fanned-out like poker hands, ready for “action?” Not too likely with massive non-performance out in cardholder-land, and half the nation’s electronics inventory wending its way onto Craig’s List.
April 17th, 2009 | James Howard Kunstler | 29 comments | Continued
Federal Reserve Has Destroyed the Economy
Neil Irwin at the Washington Post reported, with that subtle-yet-unmistakable hint of panic, “The Federal Reserve yesterday escalated its massive campaign to stabilize the economy, saying it would flood the financial system with an additional $1.2 trillion.”
March 31st, 2009 | Mogambo Guru | 8 comments | Continued
A CAP to Replace the TARP
The share market is digesting the ambitious speech Barrack Obama gave to the U.S. Congress. He’s going to cut the U.S deficit in half, increase spending, provide universal health care, improve education, replace oil with alternative energy, introduce a carbon cap and trading scheme…and that’s just before lunch! You have to wonder what kind of Kool Aid the folks in Washington are drinking…
February 26th, 2009 | Dan Denning | 0 comments | Continued
Geitner Plan Falls Short
It had been hoped that the Geitner plan would support a further rally in the stock market. In fact, he only spoke for half an hour. During that period the S & P 500 fell by 3.4 per cent. The market – and particularly the traders – was disappointed by his lack of detail. Some people expressed disappointment that he did not commit the new administration to drawing a line under the crisis. The new administration had allowed expectation of a New Deal to grow, and this was not a new deal…
February 13th, 2009 | William Rees-Mogg | 4 comments | Continued
Look out! It’s The Bond Vigilantes!
This is the media name for the bond traders who scuppered Bill Clinton’s big spending plans during his first term. Back then, the market was capable of imposing some fiscal discipline on the U.S. government by forcing it to pay higher rates of interest for the debt it sold to finance its spending plans.
February 12th, 2009 | Dan Denning | 3 comments | Continued