The markets have lost all gains from yesterdays bogus activity. I wonder if that Consumer Confidence number was entirely surveyed out of Beverly Hills?
Today's sell wave comes off the Treasury Auction which basically sucked.
Right after 1pm, the long end of the curve took it on the chin, as more and more sophisticated bond investors have figured out the Feds Game.
Geithner and Bernanke had this grand plan to bloat up the Fed and Treasuries balance sheets by buying Agency and Treasury paper, but alas, they are the only ones buying. What is going to happen when the rosy plan of lower mortgage rates goes in the toilet?
Note to Geithner and Bernanke-
GAME OVER.
Bond investors are also concerned after taking a hit in the WaMu fiasco. FDIC head Sheila Bair has little credibility among heads who understand the scope of the call, although the information available did support the fed's position. Did JPM instigate the run on the bank, which media outlets were only too happy to churn? Lot of $$ lost that day.
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