Only a stock short is seeing green on this chart today. While this surprises me somewhat, given some of the good earnings reports out today, I'm not surprised that this appears to be the verdict of millions of investors across the world on the U.S. government's latest bail-out effort. Or perhaps this is more a reflection of the rise in crude oil prices today.I am also surprised that treasury futures, which represent U.S. government debt, haven't sold off. They are still being used as a safe haven for times when stocks don't seem safe at all.
Eventually, when the debt burden becomes so onerous that the financial markets lose confidence in the capacity of the U.S. government to pay its obligations, then global investors will begin to dump treasuries, and the U.S. Dollar will become a pariah currency. I don't expect that to happen suddenly, or quickly, but certainly eventually. Profligacy eventually receives its just desserts.
