Yep. And, there goes the market... I think 5.5-6% yield on
10-year should provide a major support for the 10-year
treasuries. Until then, zeroes are very shortable. Then
again, when we hit that, it's wait and see game!
If stocks get spooked by this, the $$$ will run into bonds,
and so on... I don't expect necessarily for the bomb to
be triggered. The Fed will come to resque, with its printing
press. If it has to print 150 Trillion $, it will!
(scary thought), which is not very good for the dollar
(my expectation). On the other hand, if 150 Trillion
dollars are printed, the cummulative trade deficit will be
reduced, and likely reversed. I don't expect USD to go
lower than 30... I hope. But once it goes, it will keep
going, until IT decides to stop. I can't do it for Mr. Market. |
