Warnings this week. Treasury margin hikes, check. Chf Margin Hikes check. Jpy Margin hikes, Check. 500pt Dow drop, Check. Warnings were there, plain and simple. Joe Public who works hard every day to save for retirement and doesn't follow markets closely gets effed again. What a surprise.
Don't expect short term treasuries to have much of an impact since the shit storm of cash from equity liquidations will go to the short term notes. It should keep yields low as the meltdown comes in waves monday.
Not sure I agree with some of the rationale. Bonds would take a hit, stocks most likely volatile but the real pain will be in treasuries. FoN
Carter's policies had nothing to do with the economic issues you cite. The price of energy's rise was not his fault. Nothing short of starting a war for no reason in the Middle East, to force prices down, could have stopped that. In the case of Carter, he wanted more out of the depts of Energy and Education than what they have become. In fact, the initial goal of the Dept of Energy was to remove America's dependence on imported energy through research, especially research in renewables. As you know, the American energy industry has the lowest research investment rate of almost all industries in America now. This was not Carter's vision for this dept...
you think? The short term notes should hold up as equities are vaporized en masse when margin calls start hitting hard. Cash will at least hit treasuries. where else will it go?
Well just pull up a chart of JPy and chf,( 6j or 6s) they've basically been the safe haven currencies as of late.
Japans currency has strengthened because people are repatriating money to rebuild. It is not currency protection.