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Pastimes : All Clowns Must Be Destroyed -- Ignore unavailable to you. Want to Upgrade?

To: IceShark who wrote (8235)	2/9/2000 4:31:00 PM
From: Cynic 2005	Read Replies (1) \| Respond to of 42523

Ice, last week when the under sec made the announcement (buying back 30 yrs and only issuing 10 yrs) the long bond shorts got nuked. I read in a commentary the next day by a major bond trader saying that Summers has to eat "crow" if he reneged on that announcement. Yes, it seems that Summers had a CrowWitch for lunch today! I know that being a bond trader you can't afford to be emotional, much less take things personal. Last week's announcement was clearly aimed at screwing the long-bond shorts, you know that and I know that. Having seen the damage it caused, Summers is trying to undo some of that damage. However, from this instance it is crystal clear that intent of the Government (Treasury) is to openly manipulate the bond market by jaw-boning. In less volatile times for bonds this probably means nothing. But, many bond players said that they have never seen anything like this before. When you are getting your butt kicked in a not-so-orderly market, you don't want the government to come and create more volatility. Yet, that is exactly what Summers did. In doing so, he made it crystal clear that the Clinton Administration will try to do whatever it takes to screw those who are betting against the bubble. The cat is out of the bag and that aint good for placing your trust in an Administration which already lacks that in many facets. That is why I said, though this event may appear mundane, this is something that might set things rolling.