Thursday, October 1, 2009

Treasuries Rise Eight Straight Days


This would normally be an ominous and dark sign, but the Fed is monetizing the debt, so the market is unable to read, since it is so manipulated. This is definitely an ominous sign longer-term! If the Fed is propping up both the stock and treasury markets, then what will happen when that support is removed? And when investors pile onto that new trend, driving rates perhaps much higher than the money masters intended? Can you say, "double dip"?