Daily Global Economic Calendar

Real Time Economic Calendar provided by Investing.com.

Friday, June 8, 2012

US T-Bond Bubble.

I hear a giant sucking sound.
Its the US Treasuries sucking all the money and capital in the world. Pulling $$ from any productive use of capital. Paying 2.7% on 30-year paper (2.51% at the low).
I tried to borrow 10k at 3% for 30 years from everybody I know. They just laugh at me. But millions of people give it to treasuries without any second thoughts. Hmm.
Notations on a chart are not mine, and they are a complete nonsense. Whats important is a fact that there is no active investor alive, who traded T-Bond at lows in 1980's and could foresee prices that high (or yield so low). Even more important - there is no active investor alive, who seen a bear market in US Treasuries. But that is nothing. Why? Because the hard right edge of this chart is not active investors, but pensions, IRA's, mom-and-pop etc., who have no clue what shit they got themselves into.

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