US 10 Year Yield %
Bernankemugabe said he'd put the printing press in overdive, and start buying up US bonds soon, which he hasn't done (yet).So when he does, will that drive interest rates down, as he has unlimited firepower?
Or will printing money drive interest rates up, as foreigners flee the ZimbabUnitedStates?
May you live in interesting times.
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8 comments:
it will not be different this time...
expect $5000 bread
This proposal by the Republicans to offer everyone with good credit a 4% mortgage will lead to financial armageddon. We already saw a weak Treasury auction last week. This 4% proposal will become massively expensive as the 10 year Treasury yield increases forcing higher Treasury needs. This vicious cycle will spiral out of control.
This is probably the scariest piece of the bailout.
This is the endgame in terms of the U.S. Treasury Bubble because the Fed is buying U.S. Treasury Bonds. For the life of me, these idiots who continued to invest in our Bonds will be so screwed! And they deserve it too! I hope the Chinese, Japanese, Germans, British, Swiss, etc... have learned their lesson.
mmmmmm, TBTs.
DEC 2008
C'mon guys, sing along: We are the world, we are the children, we are the Ponzi...
Feds want promoter Jack Utsick in Miami for Ponzi case
Miami concert promoter Jack Utsick is under FBI investigation for allegedly diverting millions from his investors to pay for collector cars, a luxury condo, artwork and other personal expenses.
Utsick, who promoted shows for Elton John and the Rolling Stones, could not be reached for comment. But documents in the federal civil case say he has requested immunity from arrest if he agrees to travel to Miami.
Initially, investigators determined Utsick and two former partners were selling unregistered securities to finance concerts featuring bands that include Santana, the Pretenders and Aerosmith, according to court records.
Then, regulators said they discovered that Utsick was actually losing money on most venues, though he had been claiming to be earning millions of dollars each year -- $112.5 million in 2005.
''What we were seeing was a Ponzi scheme,'' said receiver Michael Goldberg, a lawyer who has been tracking down assets for nearly three years.
Along the way, Utsick was tapping into his investors' funds to support a lavish lifestyle, including a condo in South Beach's Portofino Towers, $34,000 for artwork, $200,000 for a yacht, and nearly $500,000 in credit card bills for purchases at Macy's, Bloomingdale's and Victoria's Secret, according to SEC filings.
In all, the longtime promoter was accused of fleecing investors out of $293 million, according to the government's lawsuit in 2006.
http://tinyurl.com/cr34rr
I will take the other side of that trade - already did. Long TLT to the moon. In deflation, Treasuries will be the only thing worth owning...for a time...
If Americans stay apathetic, this is my scenario:
They could regulate rates and fix them at 4% and keep on printing money.
Of course it would force out private investment and you'd get hyperinflation.
Then, when everything is a total mess and everybody is wiped out except a few elite; when nobody knows who has what and who is to blame anymore, TPTB will press the restart button and create a new currency to go with the new world order.
Of course, the elite have already prepared and get rewarded in such a scenario. And the US thus becomes a Banana republic.
This proposal by the Republicans to offer everyone with good credit a 4% mortgage will lead to financial armageddon.
Hell with that, I want a ZIRP mortgage. Zero percent fixed rate. Of course, 1,500 percent inflation would work almost as well. I could skip my $150,000 cup of Starbucks some morning and pay off my mortgage instead.
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