What message is that? Short rates at zero, 10yr under 2%. Big fall in yields since early 2011 to near record lows across the board, which has yet to reverse. About the only thing you can say is 30yr is somewhat above the spike low of 2008. From what I can tell the bond market is saying things are much worse than early 2010, when the market was at 1100-1200 not 1400. Certainly worse than early 2011 when the market was at today's levels. CB buying of bonds and thus triggering speculative bidding-up of stock and commodity prices is not a stable or sustainable investment environment.
Tinfoil has a foggy understanding about the mechanics of all these markets. Just a few short months ago, he was busy telling all of us that there were no issues with rolling over the debt since there was great "investor interest". This imbecile would tell you that it's another "conspiracy theory" that the Fed is basically the bond market.
That's your comeback? Incidentally, I am short, but it is in currencies. For instance, I have an open EUR/SGD position that is phenomenal right now.
This Obama bull market is blowing shorts out of the water. I am upping my price target for SPY on expiration friday feb to 137.50
As much as I hate supporting Republicans.... You can look at that chart in a different way. The Republicans are forced to deal with the exceses created by the democrats. The Republicans fix the exceses, a recession follows, and the Republicans enjoy the positive benefits of the recovery. Carter (Democrat) - savings and loans crisis. Reagan and Bush Senior enjoys the consequences Clinton(Democrat) - tech bubble, launches policies which cause housing crisis.\ Bush Junior enjoys the consequences Obama(Democrat) - Debt bubble. Which Republican will enjoy the consequences? The common theme here is actually policies established by Regan/Greenspan which liberated a more conservative approach that was established in the Carter/Volcker era. So is it actually more accurate to blame the FED????
well, first of all, all manufacturing jobs are low skill, no degree required, Toyota out where I live doesn't even require a high school diploma. You just need people who know how to fix things. Secondly WPA sounds like a simple solution, but they tried that in Spain and now years later they have highways and bridges and airports but no one to use them. If you think about it, WPA is of all solutions the most unstainable. But I wouldn't be up in arms if they started one, at least it would greatly help in the short run.
I sure don't have an answer to this problem of permanently lost jobs. But I'm thinking it is better to provide and require "busy work" to earn a subsistence paycheck than it is to just hand out money to folks parked in front of a TV. That's an interesting comment about Spain -- infra structure but no one to use it! And I suppose that could happen in the U.S. as well. Maybe this is not true, but it seems sometimes that decisions in the public sector are made mostly in the way you would expect them to be made in the private sector, i.e., which path leads to the greatest corporate profit. I would think that decisions in the public sector ought to be based on which path or action leads to the greatest public good. But instead, it seems like our elected officials are more interested in helping the corporate world than they are interested in maximizing public good and maintaining free competition. They will sometimes argue that what is good for the corporate world is good for the public, but I'm not convinced they don't have that backwards. Perhaps it's what's good for the public that is, in the long run, best for the corporate world.