Saturday, 6 August 2011

U.S. Two-Year Yield Hits Record Low as Slow Growth, Europe May Spur Fed

http://www.bloomberg.com/news/2011-08-06/u-s-2-year-yield-hits-record-low-as-growth-europe-may-spur-fed.html

SAMEER SAYS


SHORT TERM US YIELDS HIT RECORD LOW


AS I V SAID - THIS HAD TO HAPPEN


YOU SHOULD WONDER  - WHO ARE THESE PEOPLE WHO ARE PUMPING MONEY IN SUPER SHORT TERM US T BILLS


THE RATES ATE CLOSE TO ZERO PERCENT


THEY ARE HAPPY GETTING PAID NOTHING - THEY LIKE TO PRESERVE CAPITAL - THEY DONT CARE ABT YIELDS


SO THESE ARE PEOPLE WHO ARE SCARED TO LOSE THEIR MONEY AND WANT CAPITAL PRESERVATION


THEY WANT TO BE IN SUPER SAFE CASH


AND THAT IS SHORT TERM U T BILLS AND NOTES


AND THIS BEHAVIOR CAN ONLY BE SEEN WHEN YOU EXPECT PRICES OF HOMES, CARS, STOCKS, CMDTY, ETC TO FALL AND CRASH


CASH IS KING IN DEFLATION


AND THIS IS WHAT WE ARE GOING TO SEE - VERY SOON

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