Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (573084)	5/7/2004 10:13:34 PM
From: sea_biscuit	Read Replies (1) \| Respond to of 769670

The problem is that these bogus employment numbers can beat down the bonds so much that it can shake up the derivatives market. Who knows what's happening there? Even experts on derivatives cannot fully understand the monster now. But suffice it to say that any sudden changes like the 100bp increase in 10yr Treasury yields in just over a month, can have devastating ramifications. Add to this, the stock-market. Already insanely overvalued (since it is all based on projected pro-forma earnings numbers and nonsense like that), the climbing bond yields can bring the stocks down just like that. At the end of it all, we will have a burst bond bubble, a stock bubble that was reinflated but burst once again, a burst housing bubble and because of the burst refi activity, a burst consumer bubble. And that's when they will tell us that the employment numbers were fake anyway! :-((