And it is bad news, indeed--albeit only one incident, so far. But it's not bad news just for Geithner. It's bad for US citizens, their children, and for BennyBoyBernanke.
Stocks lost ground after a weak auction of U.S. government debt stirred worries about how easily Washington will be able to raise money to fund its economic rescue program.
Investors gave an unexpectedly cool response to a $24 billion auction of 5-year Treasury notes Wednesday, which also sent prices for Treasurys lower. --AP
(When T-prices go down, interest rates go up.)
But that's not all of it, folks.
You wouldn't think that would happen on the day that Ben came into the market to buy Treasuries, but it did
Bernanke's Fed was buying T-Bonds today--and despite that, the T-market's prices went DOWN!
We're not done yet:
...the BOE (England) actually had a failed Gilt auction, with insufficient bids for the amount pushed out
The Bank of England (that country's "treasury department") COULD NOT SELL ITS BONDS.
Frankly, I don't expect that Dave Obey and Nancy Pelosi understand the implications of this. Obama may; but only if Geithner tells him at least three times.
Denninger has the Cliff's Notes version:
Cut that crap about "borrow and spend", along with playing "circle jerk" and "I'm gonna threaten to print money!" out right here and now, or run the risk of the Treasury market imploding in your face, taking what is left of the American economy and our capital markets with it.
That rally in Madison? Maybe torches, pitchforks, AND tar & feathers.
Or maybe just a lot of hangman's nooses.
Did someone say 'pitchfork?'
ReplyDeleteCan I bring a rail, too?
I saw this yesterday. If I'm ging to refi, I better do it now.
ReplyDeleteCould they possibly be this stupid? Or am I right about conspiracy? Federal debt like this is going to be a disaster either way.
I vote for bringing all of the above.
ReplyDeleteAs for the issuance of new debt, that gravy train is just about over. Say hello to hyperinflation and massive tax increases.
0bama woudn't understand this if Geithner told him 100 times.
ReplyDeleteMaybe a recall effort is in order?
ReplyDeleteThe American people CANNOT be this stupid as to not see what's going on here.
Hope and change my f$%#*n' a$$!