Comments on: DID WALL STREET FLIP OFF TREASURY TODAY??!!

By: Buy Propecia

Buy Propecia — Fri, 27 Mar 2009 10:07:16 +0000

Buy Propecia…

http://www.folkd.com/user/buypropeciaonline Buy Propecia…

By: Toxic Treasuries Redux « Sky Dancing in a Man’s World

Toxic Treasuries Redux « Sky Dancing in a Man’s World — Fri, 27 Mar 2009 00:15:29 +0000

[...] them to actually buy at high price mid-morning then selling much later at a low price. Larry Doyle over at NQ heard that Wall Street was trying to sell three times the amount that the Treasury actually [...]

By: Toxic Treasuries Redux « The Confluence

Toxic Treasuries Redux « The Confluence — Fri, 27 Mar 2009 00:15:06 +0000

By: PamFlorida

PamFlorida — Thu, 26 Mar 2009 21:27:40 +0000

My knowledge of economics is at the micro level – ergo, my own personal economy. However, I do understand borrowing, spending and repaying debt.
The BO Corp, Congress, and the Fed have borrowed, loaned, spent, and printed money at warp speed in the last 6 mo., and particularly since the inauguration. The funds are going in a circle, bypassing the private sector and small businesses who create jobs.
They have put too much money into a non-producing system and I believe inflation is rearing it’s ugly head. Look for prices and interet rates to go up soon. I’m skeptical of the recent market gains and don’t believe they are sustainable. April will be telling.
“Some days you eat the bear, and some days the bear eats you”.

By: elise

elise — Thu, 26 Mar 2009 19:07:57 +0000

I guess I’m still a little lost. Which interest rate? Is this what is paid to investors for buying the bonds or what is charged for borrowing? It sounds a lot like what happened in the private sector when the stimulus checks were sent out. People used the checks to pay off debts and actual buying/spending didn’t happen.

By: Sassy

Sassy — Thu, 26 Mar 2009 13:36:56 +0000

Elise, I understand what you are saying.
We are already seeing inflation in grocery prices as well…40% on small items.
Like you, I don’t understand all the ends and outs of finance, but I’m leery of the actions taken at this time.
I have stated before that housing will be pushed up astronomically again, so round and round we go!

By: LD

LD — Thu, 26 Mar 2009 13:12:44 +0000

Elise…

You are not incorrect in that it is very much like a circle. Government bonds and govt sponsored mortgage backed securities are circulating from one entity within the govt (TSY) to the Fed (I incorrectly wrote that it was the TSY both buying and selling. The TSY was selling, the Fed was buying). The goal is to drive interest rates down (I’m pessimistic) on these bonds in hopes it revives consumer and corporate borrowing. (we need demand from these areas to increase…right now as these groups are delevering, paying down debt, demand is anemic).

These bonds being purchased are not toxic assets.

Foreigners can buy but have been purchasing less lately.

Oil is moving up because inflation is expected to increase down the road.

By: mountainaires

mountainaires — Thu, 26 Mar 2009 12:23:15 +0000

That’s what I thought, too, but I’m glad to hear your thoughts on this Dakinikat.

Thanks for addressing this LD. It seems that there is no step but a misstep with this crew of chaos.

By: elise

elise — Thu, 26 Mar 2009 08:09:21 +0000

I’m really struggling to understand this, Mr Doyle. The US Treasury bought government and mortgage securities around noon today? Are these the toxic assets? Then they sold bonds ( or tried to sell ) back to Wall Street investors at a lower price than the purchase? Now the next part: How is this supposed to lower the interest rate for banks and who will they borrow from? And how will lower interest rates stimulate private borrowing? The prime rate is low already, is it not? And I heard mortgage rates are below 5%. Are these rates going to be applied to loans for refinance on foreclosures or new loans or both? What is the interest rate on the bonds being auctioned and are they available only for large investors? I know my limits on understanding the economy, but this just sounds like the wheel going round and round and if the money is still just circulating from the treasury to investors to the treasury, how is that going to help the rest of us? Are any foreign investors or governments making bids? I noticed the price of oil is going up again and it is going to be demoralizing if gas prices start going up again. I don’t know about the rest of the country, but food prices are rising again here in Colorado. Maybe we get hit more because of transportation costs, but I know what I’m talking about when it comes to grocery stores so are we looking at inflation? We went shopping this past weekend and there were some bare shelves and the last time we saw that, the prices went up even more. Sorry for all the questions. Thanks.

By: I'm a Linda too

I'm a Linda too — Thu, 26 Mar 2009 04:29:55 +0000

It does seem so LD.

By: Dakinikat

Dakinikat — Thu, 26 Mar 2009 03:37:20 +0000

yup, bear rally, sucker rally, dead cat bounce …

By: athena

athena — Thu, 26 Mar 2009 03:36:18 +0000

So would you say the last few days have been a Bear rally? Any thoughts? Anyone?

By: Dakinikat

Dakinikat — Thu, 26 Mar 2009 03:35:14 +0000

the Wall Street Put?