Sorry to hijack Twilights thread.................So today I was right. Bonds soared, (meaning long term interest rates plunged) and the stock market took it on the chin.
The more conspiratorial amongst us bears suggest that they were all set to announce some kind of super boffo fantabuous new jobs number in the 300K range but then they got a call from Easy Al Greenman who said, " kill that report, I need help with the long rates." An so it came to pass since Al, the Lizzard King, rules the world, or trys to.
Ten year bond yields got close to 4% today. Lots of bond people were thinking that a move towards 5% was in the cards. (It still is but Al is down to throwing the levers one day at a time) Al is desperate to get it lower to reignite the mortgage mania. Jobs? they don't care about no stinking jobs. Jobs are for losers, stinking Democrats and assorted trash. What the world needs is ultra low mortgage rates so that we can get back to the springs glorious $2 TRILLION annual rate of mortgage lending to flood the financial system with liquidity.
There is only so much money, liquidity to go around. For weeks it has been flooding into stocks and the touts have been foaming at the mouth saying how glorious our economic future is. Both these thing were driving up long term yeilds. First because of the simple liquidity thing since money was comming out of bonds and going into stocks. The happy story about the strong economy made bond 'investors' if there is such a thing anymore, figurer with a strong economy rates SHOULD go up.
Thus Al go on the phone and said to stuff that fairy tale jobs number.
My interesting time comment wasn't meant to be an allusion, it was meant to be a quote. The only thing I worry about more than the economic system having some kind of collapse is the worry that it won't.
*Lizzard King, as a name for Greenspan is credited to one Buddadropping an occaional poster on the Capital Stool web site and I hear on the radio somewhere out in Lala land. He is an expert at 'forensic market analysis'. The above theory about the call to kill the jobs number and the need to, is pure forensic analysis. Most everyone has heard of fundamemtal and technical market analysis but those are not much good anyomre since it is obvious to anyone watching that the markets are manipulated to a large degree. Not by a small cabal but but rather by a huge Wall Street lead conglomeration of people with common interests. Those being staying rich and getting richer, and running the world to their benefit. For the most part this now includes the totality of the federal government.
The most active forum at Capital Stool. (non political for the most part with wingnuts a small segment, something unheard of amonst bears)
http://www.capitalstool.com/forums/index.php?showforum=7