Article

2009-05-28 Economy

New Investor Worry: Treasury Selloff Spiking Interest Rates

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Posted by Steve White 2009-05-28 00:00|| || Front Page|| [3 views ] Top

#1 Doh!

Posted by newc">newc 2009-05-28 00:23|| 2009-05-28 00:23|| Front Page Top

#2 Folks, the port engine's flamed out, the starboard engine's sputtering, we're losing altitude rapidly, and I got reeeally bad news for y'all...this guy ain't at the controls on this flight.

Posted by Ricky bin Ricardo (Abu Babaloo) 2009-05-28 02:00|| 2009-05-28 02:00|| Front Page Top

#3 Aarrrghhh...I mucked up the link to the Wikipedia page. It was supposed to lead here.

Posted by Ricky bin Ricardo (Abu Babaloo) 2009-05-28 02:04|| 2009-05-28 02:04|| Front Page Top

#4 "They have a choice."

No they don't. They're up against it. If they want to flood the economy with fake dollars, they're going to have to pay higher interest.

Posted by bond vigilante 2009-05-28 07:14|| 2009-05-28 07:14|| Front Page Top

#5 They've got to mop up all that deflation (just as soon as they find something that has fallen in price that isn't normally bought with credit).

Posted by Bright Pebbles 2009-05-28 11:07|| 2009-05-28 11:07|| Front Page Top

#6 If they want to flood the economy with fake dollars, they're going to have to pay higher interest.

Of course if they don't print all of those fake dollars to prop up the market for Obama's forthcoming flood of new Treasury issues they're also going to have to pay higher interest rates. Higher interest rates are, I think, a foregone conclusion; the only question remaining is whether we'll get them with or without an extremely devalued currency.

Posted by AzCat 2009-05-28 13:49|| 2009-05-28 13:49|| Front Page Top

#7 This looks an awful lot like the start of the credit crisis 12 months ago, but for the government.

Companies had progressively shifted borrowing to the short end of the market as long borrowing costs increased (signalling increased risk), then the short end dried up as the crisis occurs.

Posted by Phil_B 2009-05-28 14:35|| 2009-05-28 14:35|| Front Page Top

#8 (just as soon as they find something that has fallen in price that isn't normally bought with credit).

Only thing I can think of that fits that description is FOOD.

Posted by Redneck Jim 2009-05-28 17:38|| 2009-05-28 17:38|| Front Page Top

#9 Gasoline - Oil

Posted by abu do you love ">abu do you love 2009-05-28 19:06|| 2009-05-28 19:06|| Front Page Top

#10 A interesting tidbit is that the Obama deficits will suck up ALL the money supply (M0, M1, M2, M3) within 10 years. I guess after that the medium of exchange will be the Yuan or seashells.

Posted by ed 2009-05-28 20:05|| 2009-05-28 20:05|| Front Page Top

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