Although Treasuries have raised the most since March on subprime crisis, the party in the furthest end of the yield curve may not survive for long
Karen Zuba
Jul. 22, 2007

The key is dollar. As dollar falls, the inflation goes up. Gold rises and that gives more impetus for investors to pull money from the long end of the Treasury notes and bonds and redeploying them in precious metals.

For now the market is in a stage of severe shock. Who thought professional investment banking firms, banks, and financial services entities with so many high flying MBAs and million (even billion) dollar investment gurus will make such mistakes!

The confidence in the financial systems is getting reduced. For now the Treasuries are rising for the flight to quality. But on the long run, things will be different – very nasty. If dollar falls below 78 in dollar index, there will be initial central bank interventions especially from Europe. If central banks fail to stop the slide in US dollar, a financial meltdown will occur. There will be massive exodus from log end of the US Treasuries. The shorter end of the curve will not be much affected as Federal Reserve will aggressively lower the rates to fight a real estate and loan loss driven recession tending to turn into depression.

Although Treasuries have raised the most since March on subprime crisis, the party in the furthest end of the yield curve may not survive for long
Karen Zuba
The confidence in the financial systems is getting reduced. For now the Treasuries are rising for the flight to quality. But on the long run, things will be different – very nasty.
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Loan losses threaten Banks to provide lower guidance and lay of thousands in what will be known as worst depression in Banking and financial services sector
Sondra Huffington
Every bubble ends up in severe meltdowns. It happened after the dot com bubble. It happened after the real estate bubble. It is happening in the banking and financial services sector.
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Doubling your net worth with futures option spread – a slow and steady process of relatively low risk and high profit
Marla Guthrie
It is a great way to exit the stock market and at the same time keep making more money from your investments in the futures market. It can be used in your regular portfolio and also in your IRA, 401(k)...
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Implementation of the Basel II capital rules now will require large banks in US to hold far less reserves – an exasperated FDIC may not be able to help during financial meldown and bank failures
Alex Brown
The agreement in the implementation of the Basel II capital rules now will require large banks in US to hold far less reserves. An exasperated FDIC may not be able to help during the financial meltdown and bank failures.
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London-based Barclays chastises and challenges Bear Sterns over subprime investment fiasco
Peter Oberois
The losses can be $400 million or more. The inscrutable conditions that exist around the facts and figure make it possible that we are just seeing the tip of the iceberg.
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Higher food prices, energy price spikes, and lower wages haunt the world for the next several decades – effect on stocks, bonds, dollar, and gold
Bernie Snyder
In China the price of eggs and meat has quadrupled in the middle of a sharp shortage. There is an acute shortage of milk and drinking water in India. All these the well paying jobs in US and Europe are shrinking very fast.
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