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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: CapitalistHogg™ who wrote (40003)	9/17/2008 7:22:30 PM
From: TobagoJack	1 Recommendation Read Replies (2) \| Respond to of 217942

more on capital flight of a sort, just in in-tray think about the implications of negative t-bill yields. it means that the debt issued by the US treasury is deemed to be more trustworthy than the cash issued by the Federal Reserve! in effect, this is a bit like fear of a figurative 'run on the Fed' in the wake of the AIG bail-out. in essence, the market is beginning to doubt the Fed's capacity to absorb any more 'balance sheet hits'. no wonder gold has soared - this situation is truly unprecedented in modern times, although by now we've been through 'unprecedented events' on a continuous basis for over a year (it started out with those 'several sigma events that should only happen once every 10,000 years' in August of '07). anyway, we're at a new level of 'unprecedentedness' here. to paraphrase Mr. Practical again: risk remains extraordinarily high.