Friday, February 15, 2008

U.S. Government bonds continue to sell


Interest rates, despite promises by the Fed, have begun to rise. In this graphic image, the three charts on the right side all represent U.S. government treasuries, which are falling in price (rising in yield). Only the international bonds, shown in the chart on the far left, are rising (lower yields).

Auction Rates Article

Here is an article that I highly recommend reading. It was sent out over the weekend by John Mauldin in his free weekly newsletter. John Mauldin is not a bear, but is becoming increasingly bearish in the tone of his newsletter. John was ranked by Motley Fool as the world's best investment adviser, second only to Warren Buffett, for the year 2007. I value his insights! In this one, he sent out a write-up by Nouriel Roubini, who paints a scenario, based upon what he sees as the next economic shoe to fall. Strange that this forecast would come out just a few days before the news hit the fan!

Twelve Steps to Financial Disaster