US Treasuries Crashing - from Gold-Eagle

(AG) Jan 03, 08:12

30-year bond already down 29 ticks with yield soaring to nearly 3-year high of 6.56%. Methinks we will see 7-8% by the Ides of March. This is the death knell for Wall Street.

-- Andy (2000EOD@prodigy.net), January 03, 2000

Answers

can someone explain the significance of this for those of us who are economically illiterate?

-- so what? (I_don't@understand.com), January 03, 2000.

Andy:

Hold back a little on the conclusions and you won't become troll bait. Your point is well taken simply using the title and first sentence.

Best wishes

-- Dave (aaa@aaa.com), January 03, 2000.

Andy,

Will you stick with this prediction, "death knell for Wall Street", or desert it when the date passes. Seems as if several people have (prematurely) administered Last Rites for Wall Street and US Economy. Regards,

-- paul dirac (pdirac@hotmail.com), January 03, 2000.

Once you begin using drugs like ExcessLiquidity regularly to alter you mood it becomes very difficult to function without them. It will be interesting to see if these guys can wean themselves off the hardcore amounts they've been digesting for the last few months.

The Mexican thing below has me a bit nervous. Possible some people didn't work on compliance as well as others? Possible they're getting slammed and PPT called in to mop up?

-- Gordon (g_gecko_69@hotmail.com), January 03, 2000.

Bonds are traded on the open market. If no one wants them, the price goes down, which means the yield goes up. Other interest rates must come up to compete. High interest rates are bad for the stock market, because investors can get a high return with no risk, by buying bonds rather than stocks.

-- Earl (eshuholm@tstar.net), January 03, 2000.

Dont pick on Andy, he just needs to have his daily fix of "scaring up the price of gold".

Besides, Andy doesnt understand half the things he posts anyway.

-- hamster (hamster@mycage.com), January 03, 2000.

I think everyone should join in on this...what do you think Andy's top three favorite movies are?

My choices:

1)The Omega Man

2)Escape from New York

3)The Stand (I think Andy's got a thing for Randall Flagg)

-- Let's Vote (before@we.alldie), January 03, 2000.

hamster and other illiterates,

this is a repost as I pointed out from GE,

not my conclusions - [necessarily]

Devil's Advocate etc.

Jeez.

-- Andy (2000EOD@prodigy.net), January 03, 2000.

1. Jean de Florette

2. Les Tricolores [Red, White & Blue]

3. Debbie Does Dallas

-- Andy (2000EOD@prodigy.net), January 03, 2000.

Andy doesnt realize that the european central banks and the yen folks now realize that they will take down the world economy if they try to revive gold. They are in deep and they and many other countries are already tied into gold derivitives and interest rate derivitives and they are stuck supporting the dollar and the fiat game. It looked like they were going to rebel in Sept, but they got a wake up call by the reaction to the price of gold and the dire consequences that loomed if they failed to support the Fiat dollar reserve system. They have backed away and frankly, they lost the currency war. They are too late. Also, it is politically incorrect to mention this out loud, but the Jews are not going to support either the german/french euro, OR the Yen as the next reserve currency. The euro folks dont support isreal and the US pays isreal billions a year. Jews are in very deep in the world finance power structure and they will keep the US dollar as thier own. Which is good news for americans, and bad news for the gold freaks.

-- billburke (bburke@rocketmail.com), January 03, 2000.

Nasdaq getting ready for moon shot

http://www.cme.com/cgi-bin/gflash.cgi

-- Gordon (g_gecko_69@hotmail.com), January 03, 2000.

It looked like they were going to rebel in Sept, but they got a wake up call by the reaction to the price of gold and the dire consequences that loomed if they failed to support the Fiat dollar reserve system. They have backed away and frankly, they lost the currency war.

======================================================================

Sorry Bill you have it half-assed.

This was a scare tactic - they fired this volley to show they meant business.

They are currently giving time for certain folks to unwind their short positions before the next spike up.

Nothing to do with Jews. It's about Oil and the ME folks.

Oil will sooner or later be priced in Euros... the Dollar is nothing but a promise to deliver debt-backed toilet paper.

In contrast the Europeans understand Gold, and they understand that the Arabs understand gold. Hence the 15% gold weighting in the Euro, a percentage that will increase as the dollar tanks.

Comprende???

Bill - you should post over at Usagold - you have some interesting, if cock-eyed views.

-- Andy (2000EOD@prodigy.net), January 03, 2000.

Hi Andy, I was a gold eagle reader and believer this year, I still read the stuff as it is interesting analysis. However, I think they overlook some factors that influence what actually happens. Like, the Arabs, dont fergit, the Kuwaitis didnt lend thier gold for the reason that was mentioned by the Metropole cafe folks. The kuwaitis and the saudis know who came to rescue them from saddam. And who keeps both Iran AND Iraq at bay. NOT the germans or the weak minded french! The saudis are trained in US universities and know they are heavily indebted to our military strength. Also, if the US dollar tanks, the oil usage tanks and thier market dries up and they become even MORE vulnerable. What do they have to gain by giving all the power to the germans and french? Or the japs? Nothing! what is the url of that forum anyway. Those guys there would probably like someone to bounce off and "educate". Might be fun for all.

-- billburke (bburke@rocketmail.com), January 03, 2000.

Its easy to look like a pro when everyone and his monkey is throwing money into the ring. Youll see a number have their heads handed to them when this thing goes south. Im old enough to rememver the market in68...it was devesting to the country when it fell. The only difference now is that the levels of debt and leverage are orders of magnitude higher.

Keep laughing trolls, in the 30s they were selling homes for pennies on the dollar.

COMING SOON TO A NEIGHBORHOOD NEAR YOU...

-- Frank Lee ( I dont give a damn) (ibuy@halfoff.com), January 03, 2000.

Bonds have alot of risk. You have price risk, reinvestment risk, call risk if they're callable, and if your horizon isn't further out than maturity, you have principal risk. (default risk if the USA decides to renege on its obligations; inflation risk if the USA decides to inflate out of its obligations).

I traded bonds because I had a good head for numbers and an iron stomach.

Conventional thinking has it that bonds and stocks are positively correlated. Well, conventional thinking more often than not, fails when it comes to market predictions.

-- Sandwich (anon@anon.anon), January 03, 2000.

Bill the url is www.usagold.com

I agree with much of what you say but the devil is in the details as they say.

-- Andy (2000EOD@prodigy.net), January 03, 2000.

Here were my big predictions:

1. The market would tank by mid '99.

2. If not, it certainly could not survive October, '99.

3. Gold would be up significantly.

4. After the market didin't tank last week, it would certainly "melt up" due to a massive short squeeze and Euphoria. Meanwhile the price of gold might not change, but certainly there would be high volume selling on my shares of CEF (gold/silver holding company).

How am I doing so far?

-- Dave (aaa@aaa.com), January 03, 2000.