Comments on: Let Them Eat Treasurys http://www.ritholtz.com/blog/2008/12/let-them-eat-treasurys/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Mon, 22 Mar 2010 06:36:32 -0400 http://wordpress.org/?v=2.9.2 hourly 1 By: Jack McHugh http://www.ritholtz.com/blog/2008/12/let-them-eat-treasurys/comment-page-1/#comment-132565 Jack McHugh Thu, 11 Dec 2008 20:15:56 +0000 http://www.ritholtz.com/blog/?p=12568#comment-132565 LOL, PH. Jim Grant would surely agree with you! LOL, PH. Jim Grant would surely agree with you!

]]> By: PH http://www.ritholtz.com/blog/2008/12/let-them-eat-treasurys/comment-page-1/#comment-132559 PH Thu, 11 Dec 2008 19:45:31 +0000 http://www.ritholtz.com/blog/?p=12568#comment-132559 Jack, I must object to your comment: "It may sound silly in this environment, but at some point investors will come to scorn Treasuries almost as much as they do subprime mortgages today" I think that is an insult to subprime mortgages; at least they have a piece of property behind them. What do Treasuries have? I think investors may ultimately come to scorn the Treasuries MORE than sub prime. ;>) Jack,

I must object to your comment: “It may sound silly in this environment, but at some point investors will come to scorn Treasuries almost as much as they do subprime mortgages today”

I think that is an insult to subprime mortgages; at least they have a piece of property behind them. What do Treasuries have? I think investors may ultimately come to scorn the Treasuries MORE than sub prime.

;>)

]]> By: Dr. Kenneth Noisewater http://www.ritholtz.com/blog/2008/12/let-them-eat-treasurys/comment-page-1/#comment-132543 Dr. Kenneth Noisewater Thu, 11 Dec 2008 18:52:21 +0000 http://www.ritholtz.com/blog/?p=12568#comment-132543 <i>It’s amazing how quickly our focus shifts from one thing to another in this market. Things are really bad because of A, B, C, D and E. Two weeks later we think things are going to be fine, but A, B, C, D and E haven’t changed.</i> Maybe I haven't been paying close-enough attention lately, what with the holidays and vacation and whatnot, but has anything happened to make outstanding CDS any less of a colossal nightmare? It seems the coverage of swaps and their resolution has vanished, and if we've learned anything, it's that ignoring a problem like that does NOT make it go away... It’s amazing how quickly our focus shifts from one thing to another in this market. Things are really bad because of A, B, C, D and E. Two weeks later we think things are going to be fine, but A, B, C, D and E haven’t changed.

Maybe I haven’t been paying close-enough attention lately, what with the holidays and vacation and whatnot, but has anything happened to make outstanding CDS any less of a colossal nightmare? It seems the coverage of swaps and their resolution has vanished, and if we’ve learned anything, it’s that ignoring a problem like that does NOT make it go away…

]]> By: DavidB http://www.ritholtz.com/blog/2008/12/let-them-eat-treasurys/comment-page-1/#comment-132489 DavidB Thu, 11 Dec 2008 16:35:23 +0000 http://www.ritholtz.com/blog/?p=12568#comment-132489 I just realized that my last sentence may be taken as a shot at you Jack. That was not my intention. It was a shot at all of us collectively I just realized that my last sentence may be taken as a shot at you Jack. That was not my intention. It was a shot at all of us collectively

]]> By: DavidB http://www.ritholtz.com/blog/2008/12/let-them-eat-treasurys/comment-page-1/#comment-132487 DavidB Thu, 11 Dec 2008 16:33:59 +0000 http://www.ritholtz.com/blog/?p=12568#comment-132487 They are spending now what it was going to cost to get the boomers through retirement so take everything they are spending now and double it...at least. Then take all the rich smart money that will exit the US when they figure out how much this is all going to cost. Put those numbers down on a card and give it to your kids for Christmas. If they don't kill you on the spot take them to the nearest mental health facility because they are clearly not in their right minds. At least they will fit in though They are spending now what it was going to cost to get the boomers through retirement so take everything they are spending now and double it…at least. Then take all the rich smart money that will exit the US when they figure out how much this is all going to cost. Put those numbers down on a card and give it to your kids for Christmas. If they don’t kill you on the spot take them to the nearest mental health facility because they are clearly not in their right minds. At least they will fit in though

]]> By: Jack McHugh http://www.ritholtz.com/blog/2008/12/let-them-eat-treasurys/comment-page-1/#comment-132483 Jack McHugh Thu, 11 Dec 2008 16:28:07 +0000 http://www.ritholtz.com/blog/?p=12568#comment-132483 Treasury was very vague about what form "novel approaches" might take, so the reaction in the financial community will be muted until more details come out. The tie in to the gold rally might well be a reach on my part, but my general take is that investors' appetite for gold will increase as our government's appetite for intervening in the economy increases. The long term concern surrounds the Fed's possible plan to put a ceiling on Treasury yields and it may have to monetize some of these purchases. It may not be today's business to be concerned about excess monetary creation, but it will be during the years ahead. Treasury was very vague about what form “novel approaches” might take, so the reaction in the financial community will be muted until more details come out. The tie in to the gold rally might well be a reach on my part, but my general take is that investors’ appetite for gold will increase as our government’s appetite for intervening in the economy increases. The long term concern surrounds the Fed’s possible plan to put a ceiling on Treasury yields and it may have to monetize some of these purchases. It may not be today’s business to be concerned about excess monetary creation, but it will be during the years ahead.

]]> By: DP http://www.ritholtz.com/blog/2008/12/let-them-eat-treasurys/comment-page-1/#comment-132394 DP Thu, 11 Dec 2008 12:45:55 +0000 http://www.ritholtz.com/blog/?p=12568#comment-132394 It's amazing how quickly our focus shifts from one thing to another in this market. Things are really bad because of A, B, C, D and E. Two weeks later we think things are going to be fine, but A, B, C, D and E haven't changed. We still have to get through December's job numbers, lowered consumer liquidity due to credit card companies putting on the squeeze, the redemptions when those hedge funds who "closed the doors" have to eventually open them and throwing money at the banks like crazy seems to have done nothing but create a bubble in treasuries. Companies that lowered guidance and were sold off, after they'd already been sold off on the expectation of that guidance, will be sold off again when Q4 shows they did what they said they would. The market loves to "sell off" the same news multiple times. What we really need to rally, apparently, is a nice even million monthly jobs number. If we need something drastic it's time for the government to just open their own bank and loan directly to businesses that need it. Let the existing banks fail. Sound ridiculous? Well we made a good start with the loans to Citigroup et al and are about to do the same with the automakers. If the bastards that took these hundreds of billions to improve the credit market won't lend, bypass them. It’s amazing how quickly our focus shifts from one thing to another in this market. Things are really bad because of A, B, C, D and E. Two weeks later we think things are going to be fine, but A, B, C, D and E haven’t changed.

We still have to get through December’s job numbers, lowered consumer liquidity due to credit card companies putting on the squeeze, the redemptions when those hedge funds who “closed the doors” have to eventually open them and throwing money at the banks like crazy seems to have done nothing but create a bubble in treasuries. Companies that lowered guidance and were sold off, after they’d already been sold off on the expectation of that guidance, will be sold off again when Q4 shows they did what they said they would. The market loves to “sell off” the same news multiple times. What we really need to rally, apparently, is a nice even million monthly jobs number.

If we need something drastic it’s time for the government to just open their own bank and loan directly to businesses that need it. Let the existing banks fail. Sound ridiculous? Well we made a good start with the loans to Citigroup et al and are about to do the same with the automakers. If the bastards that took these hundreds of billions to improve the credit market won’t lend, bypass them.

]]> By: DOW_1500 http://www.ritholtz.com/blog/2008/12/let-them-eat-treasurys/comment-page-1/#comment-132386 DOW_1500 Thu, 11 Dec 2008 10:05:44 +0000 http://www.ritholtz.com/blog/?p=12568#comment-132386 USD was falling, so Gold rose, thats all! USD was falling, so Gold rose, thats all!

]]> By: Dow http://www.ritholtz.com/blog/2008/12/let-them-eat-treasurys/comment-page-1/#comment-132383 Dow Thu, 11 Dec 2008 06:55:38 +0000 http://www.ritholtz.com/blog/?p=12568#comment-132383 Excerpt: The Treasury Department announced today that it is considering “novel approaches” to the future issuance of U.S. government debt. Is it a pure coincidence that Gold perked up so much on the same day this statement hit the tape? Other than gold, any reaction to this announcement - from bloggers, pundits, etc? Excerpt: The Treasury Department announced today that it is considering “novel approaches” to the future issuance of U.S. government debt. Is it a pure coincidence that Gold perked up so much on the same day this statement hit the tape?

Other than gold, any reaction to this announcement – from bloggers, pundits, etc?

]]>