Treasury rates can zoom in the coming months creating a scenario for stock market crash in September October 2009
Peter Oberois
Jul. 25, 2009

The stimulus money is getting refinanced. The U.S. treasury is preparing to sell a record $115 billion in notes. The benchmark 10-year note yield rose 1 basis point on the week, or 0.01 percentage point, to 3.66 percent. But the trend is real scary. The commodity inflation is catching up. The dollar is weak. The US Treasury refinancing will hit record level never ever seen in the history. Corporate profits are weak. But the stock market enjoys a relief rally.

The Treasury yield can reach 7 to 9% all on a sudden. That can be the sudden and chilling recipe for a massive stock market crash in September-October, 2009. Bernanke confirms that while the economy is showing tentative signs of stabilization, the record budget deficits post a threat to the recovery.

The difference in yield between two- and 10-year notes touched 2.66 percentage points yesterday, the highest in seven weeks. The Federal Reserve is holding the short term rates down. But the long term rates are moving up because of the market’s inflation pressures.

Treasury rates can zoom in the coming months creating a scenario for stock market crash in September October 2009
Peter Oberois
The Treasury yield can reach 7 to 9% all on a sudden. That can be the sudden and chilling recipe for a massive stock market crash in September-October, 2009.
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British GDP downtrend confirms slow and steady stealth depression – it is time to dump sterling and buy the euro
Sam Adelton
What is the net effect on the pound sterling? It is in a deep down trend says some analysts. It si time to go long the euro and short the sterling.
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4,000 lobyists and more than $12 billion dollars floating in Washington to stop Obama’s healthcare bill – conservative Democrats rallying for special interests along with the Republicans
Tania Solanki
The conservative Democrats are rallying for special interests along with the Republicans. It is a shame. But that is American democracy – money has a much larger say than votes of common people who are not the richest!
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Data show German economic recovery faster than US, UK, and Japan – Buy Euro sell the Dollar, Pound, and Yen
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German GDP expansion in the coming quarters will far exceed that of contracting GDPs of Japan, UK, and US. What does that sound for Euro, Yen, Sterling and Dollar?
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After hours Microsoft slump by 7% Dow reversal imminent – bear market alive and well
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According to economic think tanks, the bear market is alive and well. The reflex bear rally is finally coming to an end as August-September nears. The Dow can crash in September-October time frame.
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US Depression intensifies - Bank of America Corp., the biggest U.S. lender, faces a 10 percent jump in uncollectible loans to $7.6 billion
Sanla Pau Louiski
Bank of America received $45 billion in U.S. rescue funds plus a U.S. guarantee of $118 billion in assets. But it may not be sufficient to continue the staggering losses for another year.
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U.S. service industries from retailers to homebuilders contracted last month at the slowest pace last month
Peter Oberois
The trend is encouraging but the problem is that it is typical of bear markets and secular longterm economic depressions.
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