"MILAN (Reuters) - Italy paid a record 6.5 percent to borrow money over six months on Friday and its longer-term funding costs soared far above levels seen as sustainable for public finances, raising the pressure on Rome's new emergency government.
The auction yield on the six-month paper almost doubled compared to a month earlier, capping a week in which a German bond auction came close to failing and the leaders of Germany, France and Italy failed to make progress on crisis resolution measures.
Though Italy managed to raise the full planned amount of 10 billion euros, weakening demand and the highest borrowing costs since it joined the euro frightened investors, pushing Italian stocks lower and bond yields to record highs on the secondary market.
Yields on two-year BTP bonds soared to more than 8 percent in response, a euro lifetime high, despite reported purchases by the European Central Bank."
DO MY OWN EYES DECIEVE ME????
"This Summer's first U.S. debt downgrade came after Washington failed to fix the debt ceiling one way or the other. Three months later, and Washington just failed again.
Yet that first downgrade also saw 10-year Treasury yields fall to 3.0% as US debt prices rose. And today, with a second downgrade nailed on, that yield is already down below 2.0%.
What gives? Why is the financial world piling into US debt - driving its price higher - even as the security of that very debt risks being de-rated further below the magic risk-free AAA mark?"
Now, has our credit worthiness improved? Didn't S&P warn that progress MUST be made or further downgrades loom? ISn't that why SUPER C was formed? SO they couldn't even agree and come up with ONE SINGLE IDEA? NOT ONE? Yes our yields continue to fall to Depression like levels and it appears anyway that there are tons of buyers for a SUB 2% 10 year yield??? and this doesn't worry anybody? THIS IS A DEFLATIONARY DEPRESSION LIKE SIGNAL
SO what to do? For now, just sitting in US $'s is making you money, on top of that US EQUITY prices are falling so if you sold and sit in cash you are effectively SHORTING the market with NO RISK, with HOPES to buy back shares of good companies or SP funds oe ETF'S at bargain prices....yeah just like the insiders do.....ONE CATCH...you have to HAVE CASH to be able to do that and not sit idly buy as a bagholder patsy to do so.
CALL YOUR FINANCIAL ADVISOR, call ANY advisor and ask them what to do....please post anyone telling you to run for the hills, raise cash. THEY WILL SAY SIT TIGHT....they always say STAY PUT.
It is in the nature of the investor to finally PANIC after mounting losses and flood the exit gates...usually near THE LOWS, like in 2009. Not TOO many wanted to touch stocks at height of crisis with bank failures warned of looming.
In a BULL MKT one must indeed RIDE THE EBB and FLOW TO EACH NEW HIGH or you WILL miss it, because often the greatest gains come in a single day or 2 of trading...NO ONE is that good to catch those. YES you have to stomach shake down draw downs as the markets in BULL MKTS WILL correct, but Technical Analysis can keep us IN, and WARN us if the trend is no longer our friend.
I have signalled BEAR MKT IS NOW UPON US, that is of course just my opinion, and I am just telling you what I am doing, you must get expert advice and in the end make your own mind up.....'do I ride this out, make portfolio changes, run for the hills...whatever"
My main point is, everyone must think for themselves, and you must have some way you can figure out your best options. CAN YOU find a Financial Advisor who can help you weather these storms? WHAT is YOUR time horizon, everybody's is different.
WHY DO I HATE THE FEDERAL RESERVE?
because they have single handedly ruined our currency and are responsible for the current LOW INTEREST RATE POLICY that SCREWS the saver and tries to BAIL OUT the investor....I mean INSIDER.
It feels like it to me, that these same policies, and world crisis is the culmination move of a multi decade move into Treasuries driving the yield down to Historical Depression Like lows......and that feels like the TITANIC to me.....quite a LARGE PORTION running in the same direction at a time where our need to finance great is the greatest...USUALLY that would mean HIGHER RATES (like eslewhere in world) to ATTRACT capital to buy the yields with it's inherrant risk....at below 2% it LOOKS like there is very little risk in holding them.
IF INDEED for now that is correct, does a below 2% yield warn of inflatoin? HARDLY
Be careful my friends, open your minds, seek the truth.
Duratek
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