Posted on 09/10/2010 4:16:30 AM PDT by blam
Does The Bond Collapse Signal Trouble For Gold And Yen Owners?
Joe Weisenthal
Sep. 10, 2010, 6:13 AM
Once again, if you haven't seen the sharp fall-off in Treasuries, here's a chart. It's violent.
Now the bond market is frequently described as being "smart" or a leader of equities and other markets.
So if you think the bond market is selling off (and the reason for the selloff is unclear, but it looks like a "risk on" rally, as stocks are going up), then you have to wonder what's in store for holders of yen and gold, which have both rallied along with bonds, and share similar characteristics in terms of flight-to-safetiness.
Here's dollar yen, which hasn't rallied at all. Is it about to?
[snip]
(Excerpt) Read more at businessinsider.com ...
Just listen to Palin...her words.
About those charts — have you tried tea leaves yet?
From a previous day's article in the same publication: The big drop you see was a Treasury auction that Rick Santelli graded a "C-" because demand was sloppy. ... But then, it's always bad news with the bond market. One day it's flight-to-quality, the next day it's solvency fears. You can spin it however you want.
Could it be that people are rejecting long term Treasures because of inflation fears? Could people be worried about about default? Could the flight-to-dollar-safety be relative, conditional and temporary? Could the markets be scared of the long term effects of the economic damage caused by Rats, Rinos and the Wee Wee?
Or in other words, could it be that people don't want long term Treasuries for the obvious reasons?
How many times must it be said, GOLD is not an investment....it's an insurance policy....that's it!
A last ditch alternative to complete destitution...the last bus stop...the end of the paved, gravel, now dirt road....the cliff in the distance. Plus its pretty....
So are we in for a matching stock market rally to 11,000+?
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