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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: westpacific who wrote (76735)	12/27/2006 1:01:57 PM
From: Mike Johnston	Read Replies (2) \| Respond to of 110194

It is going to end badly for 60-70% of folks in this country. Crazy is an understatement. 10-15% inflation with 5% bond yields, insane. Although i am open to possibility of huge spike in the market(a la Weimar, Brazil, Zimbabwe) i have limited long positions in the market, balanced with shorts right now, since nobody knows when and if that happens. I am putting more money into gold though.

To: westpacific who wrote (76735)	12/27/2006 1:32:11 PM
From: $Mogul	Respond to of 110194

The Treasury Department sold $20 billion 2-year notes at a yield of 4.765% vs Nov 4.692%, Oct 4.894%. The 2-year auction shows a bid-to-cover of 2.46 compares to Nov 3.02, Oct 2.91. Indirect bidders, includes foreign central banks, took 34.7% vs Nov 56.0%, Oct 30.8%. December and January tend to have weaker indirect bidder participation, so 34.7% is relatively strong. The Treasury Department sold $20 billion 2-year notes at a yield of 4.765% vs Nov 4.692%, Oct 4.894%. The 2-year auction shows a bid-to-cover of 2.46 compares to Nov 3.02, Oct 2.91. Indirect bidders, includes foreign central banks, took 34.7% vs Nov 56.0%, Oct 30.8%. December and January tend to have weaker indirect bidder participation, so 34.7% is relatively strong. I don't preceive that for short term bonds, anyone will get better rates then today, hence the likely unsustainable spike in yields today.

To: westpacific who wrote (76735)	12/28/2006 6:39:43 AM
From: Real Man	Respond to of 110194

Bulldog on prubear first observed the unusual e-mini activity in 2004. He is the floor trader who first saw the manipulation of the stock market. Here is his recent post, which I think describes the situation very well. We are in a huge credit mess, and the Fed is at the crossroads - the choice is between hyperinflation and depression, or a combination of both. Once foreign recycling ends, the dollar will sink very fast, and we will be in for a German or Brazillian nightmare. Foreign recycling depends on the confidence in the dollar as a hard currency. Without it foreign CBs will stop the recycling. Once the confidence lost, it will be hard to get it back. 64.29.208.119