The low yields on the 10 year basically says that the Fed is not going to borrow anymore to stimulate the economy. The economy will suffer because as we can see already, the banks are failing. Check out the basis points on BAC. Not just in the US either... the cost to insure Euro banks are soaring. Even if the US tried to float the banks again, the velocity of money is at historic lows. The economy is going for a 2nd dip.
We rallied <b>because of</b> QE3. Yields are going down due to flight to safety, not a lack of stimulus. There will be some and even if the public's not aware of it, we can see it in the unusally large size of the Fed's balance sheet and especially in M1.
How narrow the mind thinks when being operated by foolish people. If you were truly intelligent you would understand that it doesn't matter if I said i had 100% before I started the journal. The fact of the matter is the market is down 20% from my high water mark and I am only down 8%, all of which has taken place since I started my journal. I am not posting here anymore and will only post in my journal from now on. I feel like I'm talking to a bunch of 3rd graders and am honestly shocked that you group of people are even old enough to be trading, UTMA accounts I guess? Oh well, have fun saying things that make absolutely no sense in regards to this post, I can assure you I will not respond.
You don't think they've been effectively pushed out for going on three years? I think investors will choose a -300bp return (real-rate in FI) vs. a -3000bp return in equities (peak to trough this Summer).
We SHORT COVERED yesterday. Obvious due to the fact that the rally dropped fucking dead right after the market closed for the day. After hours stopped short. Yields are down not because of lack of stimulus, it reflects that there WILL BE NO STIMULUS other than low rates. Of course it's a flight to safety. The Fed will not be borrowing for QE3 anytime soon. If you think that was the QE3 rally, that was pretty pathetic don't you think?
6% in 90 minutes doesn't sound pathetic at all. The flight to safety is due to international financial distress, not our own problems. There's some of that, but mostly it comes from non-domestic capital inflows.