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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: John Pitera who wrote (10859)12/9/2008 7:20:06 PM
From: stomper1 Recommendation  Respond to of 33421
 
Lehman bankruptcy proceedings...notes mature and cash is forced into T-bills? They had a lot of paper assets on their books.

(not an original thought by me, but interesting)



To: John Pitera who wrote (10859)12/9/2008 8:21:26 PM
From: Hawkmoon2 Recommendations  Read Replies (1) | Respond to of 33421
 
Y'know John, the fact that the 3 month is trading negative for the first time since 1929 indicates to me that we've still got a tremendous amount of room for "pump-priming".

The only thing that will alleviate this is to issue more debt to feed the demand for treasuries, or have the government directly intervene in the equity markets to scare that money out of bonds.

We're in the midst of creating a HUGE bubble in US bonds that's going to require tremendous inflationary stimulus or some major efforts by the PPT, but this time in a public manner.

Might be time to suggest placing a portion of Social Security money into the equity markets since it's apparent that yield returns are insufficient at these interest rates.

What say you?

Hawk (and NOT the Hawk who posted about Carribean Island hedge funds)