"The yield on the 10-yr Treasury is at a record all-time low and the yield on the 30-yr Treasury - the Big Daddy - is below it's lowest point during the Lehman crisis. That's not just warning signals flashing, that's the equivalent of financial nuclear air raid sirens going off.
What this means is that the liquidity is being sucked out of the global financial engine and is going into Treasuries and precious metals."
Dave in Denver
It's getting ugly out there.
Is the beach growing larger, or is that just the ocean of world liquidity receding dramatically ahead of something else?
A snapback rally here and there will not surprise me. So be careful about leaning too hard on any shorts, if you should be one of those nickel chasers.
The economic outlook is fairly poor and unlikely to get better. The Republicans certainly would not like to see a recovery this year. Anyone who does not think so please smoke your Jimson weed outside. So the US is standing on a one-legged stool, propped up largely by monetary inflation without significant reform and restructuring.
This is not your father's recession, more like your grandfather's depression. But the children ruling the world capitals have not quite gotten that yet. Or perhaps they do understand it, but just have not yet figured out how to play it for their greatest personal advantage.
These pampered princes and princesses who are talking austerity, and stop whining, and other such posturing (Madame Lagarde for example) are playing with fire, but just do not know it.
It may not take long but that will change, and become a whole other story and a turn of the page of history.
