BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[When Are We Going to Pay Off the National Debt?]]>http://www.bloggingstocks.com/2011/04/06/when-are-we-going-to-pay-off-the-national-debt/http://www.bloggingstocks.com/2011/04/06/when-are-we-going-to-pay-off-the-national-debt/http://www.bloggingstocks.com/2011/04/06/when-are-we-going-to-pay-off-the-national-debt/#commentsWith all the talk of the nation's deficit, the federal budget, and a potential government shutdown, I would like to throw a question into the debate: When are we going to pay off the national debt?

We have been borrowing more and more money, and the amount that we have borrowed has grown significantly compared to the total goods and services we make in this country.

I recall a few years ago talking to people who were buying and selling homes. I asked them how they could afford such big, expensive houses. I thought maybe they had rich uncles. But they were just taking out interest-only mortgages and the banks were lending them 95% of the value of the houses or more.

Continue reading When Are We Going to Pay Off the National Debt?

When Are We Going to Pay Off the National Debt? originally appeared on BloggingStocks on Wed, 06 Apr 2011 09:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>BudgetCongressdebt clockfeaturedfederal budgetfederal shutdownFederalShutdownNational DebtobamaU.S. debtWed, 06 Apr 2011 09:00:00 EST<![CDATA[Bernanke: Failure to Raise Debt Ceiling Could Be 'Catastrophic']]>http://www.bloggingstocks.com/2011/02/06/bernanke-on-debt-ceiling/http://www.bloggingstocks.com/2011/02/06/bernanke-on-debt-ceiling/http://www.bloggingstocks.com/2011/02/06/bernanke-on-debt-ceiling/#commentsFiled under: , ,

Ben BernankeThe past week's data-point-of-consequence for investors was delivered by none other than the head of the world's most powerful central bank. U.S. Federal Reserve Chairman Ben Bernanke underscored the nation's need to raise the debt ceiling.

Speaking at a National Press Club luncheon in Washington Thursday, Bernanke said delays in raising the debt ceiling limit, currently $14.3 trillion, could have "catastrophic" consequences, Reuters reported.

Continue reading Bernanke: Failure to Raise Debt Ceiling Could Be 'Catastrophic'

Bernanke: Failure to Raise Debt Ceiling Could Be 'Catastrophic' originally appeared on BloggingStocks on Sun, 06 Feb 2011 10:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Ben BernankeBernankebond marketbudget deficitcredit marketsdebt ceilingdebt ceiling limitFederal Reserveinthenewsnational debtSun, 06 Feb 2011 10:40:00 EST<![CDATA[Chasing Value: No Double-Dip Recession]]>http://www.bloggingstocks.com/2010/09/01/chasing-value-no-double-dip-recession/http://www.bloggingstocks.com/2010/09/01/chasing-value-no-double-dip-recession/http://www.bloggingstocks.com/2010/09/01/chasing-value-no-double-dip-recession/#commentsFiled under: , , , , , , , , , , , ,

The most common question I get from friends, family, business associates and, well, everyone is -- Do you expect a double-dip recession? My answer is an unequivocal "No!"

This does not mean that I think we are going to experience a dramatic improvement in the economy. We are not. Many of my colleagues seem to oppose my view, so it is not without some trepidation that I take this stand. However, I see the glass half full. My view is that others are overly influenced by "group-think" and the calls of doom.

I do think that we are currently adrift in uncharted waters and we may have a faulty rudder, too. The biggest fear I have is that everyone jabbering about another deep recession may actually cause one.

The following supports why I feel, from what we know, that we are not destined for a double-dip recession:

Continue reading Chasing Value: No Double-Dip Recession

Chasing Value: No Double-Dip Recession originally appeared on BloggingStocks on Wed, 01 Sep 2010 14:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AIGamerican international groupBACBank of AmericaCCase-ShillerChasing Valuecitigroupdebatedebtdeficit spendingdouble dip recessionfeaturedGenerlaMotorsgmJP MorganJPMNational DebtrecessionTEFtelefonicawells fargoWFCWed, 01 Sep 2010 14:00:00 EST<![CDATA[Flight-to-Safety Pushes U.S. Interest Rates Lower]]>http://www.bloggingstocks.com/2010/07/26/flight-to-safety-pushes-u-s-interest-rates-lower/http://www.bloggingstocks.com/2010/07/26/flight-to-safety-pushes-u-s-interest-rates-lower/http://www.bloggingstocks.com/2010/07/26/flight-to-safety-pushes-u-s-interest-rates-lower/#commentsFiled under:

Paraphrasing the great Mark Twain, if you don't like the stance of institutional investors, just wait a while.

Case in point: Investor sentiment toward the United States' large budget deficit and national debt.

A scant month ago, the talk was of bond vigilantes turning their wrath on the U.S., from Greece, Spain, Portugal and the rest of Europe's debt-plagued nations -- a predicament that would force interest rates up in the world's largest economy.

Continue reading Flight-to-Safety Pushes U.S. Interest Rates Lower

Flight-to-Safety Pushes U.S. Interest Rates Lower originally appeared on BloggingStocks on Mon, 26 Jul 2010 17:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bondsbudget deficitdebt crisisemerging marketsEuropeinterest ratesinthenewsnational debtMon, 26 Jul 2010 17:00:00 EST<![CDATA[Are Gold Critics Accurate or Simply Haters?]]>http://www.bloggingstocks.com/2010/07/13/are-gold-critics-accurate-or-simply-haters/http://www.bloggingstocks.com/2010/07/13/are-gold-critics-accurate-or-simply-haters/http://www.bloggingstocks.com/2010/07/13/are-gold-critics-accurate-or-simply-haters/#commentsFiled under: , ,

Our Wall St. Cheat Sheet framework is successful because we start by finding the biggest trends and then ride them like pro surfers. Currently, the biggest trend in the world is fiscal/monetary stimulation to ward off crippling sovereign debts and economic depression.

Unless we believe the world can simply grow its way out of the global debt crisis, gold and silver will benefit at the expense of paper currencies. If you think people are losing confidence in paper currencies now, wait until it's time to pay the tab for such imminent bills as the $13 Trillion US debt (along with the additional ~$40 Trillion off balance sheet liabilities such as Social Security and Medicare). This isn't as simple as filing for personal bankruptcy.

Continue reading Are Gold Critics Accurate or Simply Haters?

Are Gold Critics Accurate or Simply Haters? originally appeared on BloggingStocks on Tue, 13 Jul 2010 14:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>goldnational debtNationalDebtTue, 13 Jul 2010 14:20:00 EST<![CDATA[Under the Radar: China Decreases Holdings of U.S. Treasuries]]>http://www.bloggingstocks.com/2010/02/17/under-the-radar-china-decreases-holdings-of-u-s-treasuries/http://www.bloggingstocks.com/2010/02/17/under-the-radar-china-decreases-holdings-of-u-s-treasuries/http://www.bloggingstocks.com/2010/02/17/under-the-radar-china-decreases-holdings-of-u-s-treasuries/#commentsFiled under: ,

Under the radar: Some trends are obvious enough and visible to all investors. Others are more-subtle, but are just as potent, and these often slip 'under the radar.'

Case in point: China's ownership of U.S. government debt decreased in December by the most in a month since 2000, Bloomberg News reported.

China's holdings plunged 4.3% to $755.4 billion in December; China's holdings peaked in May 2009 at $801.5 billion.

Continue reading Under the Radar: China Decreases Holdings of U.S. Treasuries

Under the Radar: China Decreases Holdings of U.S. Treasuries originally appeared on BloggingStocks on Wed, 17 Feb 2010 17:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>budget deficitchinadollareconomynational debtWed, 17 Feb 2010 17:40:00 EST<![CDATA[Will the National Debt Prevent the U.S. Economy from Growing?]]>http://www.bloggingstocks.com/2010/01/08/will-the-national-debt-prevent-the-u-s-economy-from-growing/http://www.bloggingstocks.com/2010/01/08/will-the-national-debt-prevent-the-u-s-economy-from-growing/http://www.bloggingstocks.com/2010/01/08/will-the-national-debt-prevent-the-u-s-economy-from-growing/#commentsFiled under: ,

Much has been made of the U.S. national debt, totaling about $12.3 trillion. (To see the U.S. national debt in real time, click here.)

Economists agree that the debt is high and that it has to be reduced over time. The nation should not as a policy have large, unfunded programs and obligations.

Continue reading Will the National Debt Prevent the U.S. Economy from Growing?

Will the National Debt Prevent the U.S. Economy from Growing? originally appeared on BloggingStocks on Fri, 08 Jan 2010 10:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>budget deficitGDPnational debtFri, 08 Jan 2010 10:40:00 EST<![CDATA[U.S. Congress likely to pass debt ceiling hike before holiday break]]>http://www.bloggingstocks.com/2009/12/14/u-s-congress-likely-to-pass-debt-ceiling-hike-before-holiday-br/http://www.bloggingstocks.com/2009/12/14/u-s-congress-likely-to-pass-debt-ceiling-hike-before-holiday-br/http://www.bloggingstocks.com/2009/12/14/u-s-congress-likely-to-pass-debt-ceiling-hike-before-holiday-br/#commentsFiled under:

Congress will likely increase the debt ceiling by $1.8 trillion to roughly $14 trillion, before the year-end holiday recess. The House will act first, followed by the Senate.

Congress has to raise the ceiling or the U.S. government will grind to a halt in a few weeks. There's little chance the majority, led by the Democrats, will face any substantive opposition from the minority, the Republicans. The reason? In 1995-96, the Republican-led Congress picked a fight with President Bill Clinton, D-Arkansas, and temporarily shut down the federal government. The result was a public backlash against the Republican Party.

Continue reading U.S. Congress likely to pass debt ceiling hike before holiday break

U.S. Congress likely to pass debt ceiling hike before holiday break originally appeared on BloggingStocks on Mon, 14 Dec 2009 18:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>budget deficitcongressdebt ceilingnational debtMon, 14 Dec 2009 18:30:00 EST<![CDATA[Will Americans be working for Chinese wages?]]>http://www.bloggingstocks.com/2009/11/17/will-americans-be-working-for-chinese-wages/http://www.bloggingstocks.com/2009/11/17/will-americans-be-working-for-chinese-wages/http://www.bloggingstocks.com/2009/11/17/will-americans-be-working-for-chinese-wages/#commentsFiled under: , , , , , , , ,

The only thing that has been devalued faster than our precious dollar is the perpetual slide in government credibility. Over the years we have heard countless times about the importance of a strong dollar from our leaders.

"Our administration believes in and will do everything in its power to support a strong dollar" or something like this has been spewed out by Republicans and Democrats alike, yet there is little evidence that the policies put in place over the past century have done anything of the sort. Perhaps there was one person that took the heat and did the right thing -- Paul Volcker, during the Carter administration, who had to deal with dizzying inflation.

Continue reading Will Americans be working for Chinese wages?

Will Americans be working for Chinese wages? originally appeared on BloggingStocks on Tue, 17 Nov 2009 15:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Ben BernankeChinaDollar depreciationdollar valueFDXfeaturedFederal Reservefedexinflationnational debtpresidential politicsSheldon LiberSheldonLibertrade deficitwagesTue, 17 Nov 2009 15:20:00 EST<![CDATA[Greenspan: U.S. national debt, not weak dollar, is the concern]]>http://www.bloggingstocks.com/2009/10/15/greenspan-u-s-national-debt-not-weak-dollar-is-the-concern/http://www.bloggingstocks.com/2009/10/15/greenspan-u-s-national-debt-not-weak-dollar-is-the-concern/http://www.bloggingstocks.com/2009/10/15/greenspan-u-s-national-debt-not-weak-dollar-is-the-concern/#commentsFiled under:

One of the nation's foremost economic minds is sending an alarm signal regarding the U.S. budget deficit and national debt.

Former U.S. Federal Reserve Chairman Alan Greenspan said he's not "overly concerned" about the recent weakness in the U.S. dollar, Bloomberg News reported Thursday. However, Greenspan is concerned about the long-term costs to the United States associated with its rising national debt.

Continue reading Greenspan: U.S. national debt, not weak dollar, is the concern

Greenspan: U.S. national debt, not weak dollar, is the concern originally appeared on BloggingStocks on Thu, 15 Oct 2009 16:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>budget deficitfeaturedGreenspaninterest ratesnational debtThu, 15 Oct 2009 16:30:00 EST<![CDATA[How did the G-8 nations lose their buying power, stature and credibility?]]>http://www.bloggingstocks.com/2009/07/08/how-did-the-g-8-nations-lost-their-buying-power-stature-and-cre/http://www.bloggingstocks.com/2009/07/08/how-did-the-g-8-nations-lost-their-buying-power-stature-and-cre/http://www.bloggingstocks.com/2009/07/08/how-did-the-g-8-nations-lost-their-buying-power-stature-and-cre/#commentsFiled under: ,

Have the G-8 nations lost their economic power? This is exactly what James G. Neuger feels may be happening. How can this be, you ask. Aren't the G-8 nations are the wealthiest nations on earth? Yes, that is true, but it is also true that the G-8 countries also hold the the most debt.

Bank bailouts and stimulus programs will explode the G-8 nations' debt to 114% of GDP in 2014. This debt load would be triple that of emerging countries. Even some G-8 members say that the group has lost its grip in this global recession, which left them wounded and unable to carry out the grandiose programs they previously envisioned like the reduction of greenhouse gasses.

Continue reading How did the G-8 nations lose their buying power, stature and credibility?

How did the G-8 nations lose their buying power, stature and credibility? originally appeared on BloggingStocks on Wed, 08 Jul 2009 11:10:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bricg8inthenewsJames G. Neugernational debtWed, 08 Jul 2009 11:10:00 EST<![CDATA[No BRIChouse yet: Dollar to remain world's reserve currency]]>http://www.bloggingstocks.com/2009/06/20/no-brichouse-yet-dollar-to-remain-world-s-reserve-currency/http://www.bloggingstocks.com/2009/06/20/no-brichouse-yet-dollar-to-remain-world-s-reserve-currency/http://www.bloggingstocks.com/2009/06/20/no-brichouse-yet-dollar-to-remain-world-s-reserve-currency/#commentsFiled under: , , , , , ,

The BRIC nations -- Brazil, Russia, India, China -- basically the powerhouses of the developing world, recently met to discuss, among other things, the possibility of forming an effort to move away from the dollar as the world's reserve currency.

Among options for consideration: a) a shift to another hard currency, b) a shift to a basket of currencies, and c) the possibility of the International Monetary Fund's special drawing rights unit of account serving as the new reserve currency.

Continue reading No BRIChouse yet: Dollar to remain world's reserve currency

No BRIChouse yet: Dollar to remain world's reserve currency originally appeared on BloggingStocks on Sat, 20 Jun 2009 12:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>BrazilBRICChinadollarIMFIndiainthenewsnational debtreserve currencyRussiaSat, 20 Jun 2009 12:10:00 EST<![CDATA[The higher the debt is, the richer we are?]]>http://www.bloggingstocks.com/2009/03/12/the-higher-the-debt-is-the-richer-we-are/http://www.bloggingstocks.com/2009/03/12/the-higher-the-debt-is-the-richer-we-are/http://www.bloggingstocks.com/2009/03/12/the-higher-the-debt-is-the-richer-we-are/#commentsFiled under:

Congressman Mitch McConnell recently pointed out that the United States Congress is spending money at a rate of $1 billion per hour -- all of it financed with increased debt.

In this interview with Jan Helfeld, California Congressman Pete Stark argues that the more national debt we have, the wealthier we are as a country because "debt for a nation is different from debt for an individual or company." That was back when the national debt was $5 trillion. Today the national debt is $10,962,887,347,011 -- as I write this.

Continue reading The higher the debt is, the richer we are?

The higher the debt is, the richer we are? originally appeared on BloggingStocks on Thu, 12 Mar 2009 15:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Mitch McConnellMitchMcconnellNational DebtNationalDebtPete StarkPeteStarkThu, 12 Mar 2009 15:20:00 EST<![CDATA[Economic firestorm: Which costs more, stealing or stupidity?]]>http://www.bloggingstocks.com/2009/03/09/economic-firestorm-which-cost-more-stealing-or-stupidity/http://www.bloggingstocks.com/2009/03/09/economic-firestorm-which-cost-more-stealing-or-stupidity/http://www.bloggingstocks.com/2009/03/09/economic-firestorm-which-cost-more-stealing-or-stupidity/#commentsFiled under: , , , , ,

The economic firestorm that we are in the midst of is yet to be contained, or for that matter, completely understood.

Some things are very clear like the fact we spent more than we earned, as individuals and as a nation, for decades on end. That we know for sure, and regardless of who we blame the most for this situation there is no bigger economic mistake one can make.

This is something that I harp on often, and I expect I will keep on doing so because I do not have any reason to believe things will change; see: Ignore Washington -- keep saving; General Patton makes a point.


Continue reading Economic firestorm: Which costs more, stealing or stupidity?

Economic firestorm: Which costs more, stealing or stupidity? originally appeared on BloggingStocks on Mon, 09 Mar 2009 15:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>balanced budgetBalancedBudgetCongressEconomic Fire BreaksEconomic Fire StormEconomicFireBreaksEconomicFireStormfeaturedfederal spendingFederalSpendingHealth CareHealthCarenational debtNationalDebtPresident BushPresident ObamaPresidentBushPresidentObamaSheldon LiberSheldonLiberstealingMon, 09 Mar 2009 15:40:00 EST<![CDATA[Currency traders ask: Anybody have any dollars?]]>http://www.bloggingstocks.com/2009/03/02/currency-traders-ask-anybody-have-any-dollars/http://www.bloggingstocks.com/2009/03/02/currency-traders-ask-anybody-have-any-dollars/http://www.bloggingstocks.com/2009/03/02/currency-traders-ask-anybody-have-any-dollars/#commentsFiled under: , ,

U.S. stock markets appear to be in free-fall (at least short-term), the federal budget deficit will exceed $1 trillion for at least the next two years, and Congress will likely have to raise the national debt ceiling above $13 trillion -- all negative developments for the dollar.

So what does the greenback do Monday? Of course, it continues to rise -- strengthening about one-half cent versus the euro and more than 2 cents versus the British pound, to $1.2581 and $1.4034, respectively.

Continue reading Currency traders ask: Anybody have any dollars?

Currency traders ask: Anybody have any dollars? originally appeared on BloggingStocks on Mon, 02 Mar 2009 14:48:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>British poundbudget deficitcurrenciesdollareurointhenewsnational debtMon, 02 Mar 2009 14:48:00 EST<![CDATA[U.S. adds up to $2 trillion in debt... and the dollar rallies]]>http://www.bloggingstocks.com/2009/02/10/u-s-adds-up-to-2-trillion-in-debt-and-the-dollar-rallies/http://www.bloggingstocks.com/2009/02/10/u-s-adds-up-to-2-trillion-in-debt-and-the-dollar-rallies/http://www.bloggingstocks.com/2009/02/10/u-s-adds-up-to-2-trillion-in-debt-and-the-dollar-rallies/#commentsFiled under: , ,

On a day when the United States committed up to $2 trillion more in government financing and programs to unlock credit markets -- probably the federal government's largest, one-day implied commitment in history -- the dollar rose against the euro and British pound.

The dollar strengthened 1.2 cents to $1.3821 and a gargantuan 4 cents to $1.4488 versus the British pound. The dollar also rose about one-half cent to $1.1584 versus the Swiss franc.

Now, in theory, increasing dollar commitments by the U.S. government means more dollars in circulation, which means every dollar is worth less -- a sequence that should cause the dollar to fall against the world's other major currencies. Not Tuesday, and really, when you review it, not since the financial crisis took hold in October 2008, so says economist David H. Wang. And the reason is basic: the dollar's status as a reserve currency, and as a safe haven.

Continue reading U.S. adds up to $2 trillion in debt... and the dollar rallies

U.S. adds up to $2 trillion in debt... and the dollar rallies originally appeared on BloggingStocks on Tue, 10 Feb 2009 18:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>banking sectorBritish pounddollareuroFedGeithnernational debtU.S. TreasuryyenTue, 10 Feb 2009 18:00:00 EST<![CDATA[Despite rising deficit, haven status continues to support dollar]]>http://www.bloggingstocks.com/2009/02/04/despite-rising-deficit-haven-status-continues-to-support-dollar/http://www.bloggingstocks.com/2009/02/04/despite-rising-deficit-haven-status-continues-to-support-dollar/http://www.bloggingstocks.com/2009/02/04/despite-rising-deficit-haven-status-continues-to-support-dollar/#commentsFiled under: , ,

The dollar, despite the prospect of back-to-back trillion dollar U.S. budget deficits, continues to hold its own against the world's other major currencies. What's more, provided the fiscal stimulus package is passed, the national debt ceiling will increase to $12.1 trillion from the current $11.3 trillion.

The dollar strengthened about 1.5 cents to $1.2867 versus the euro Wednesday, and rose about 1.4 cents to $1.1586 versus the Swiss franc, while remaining essentially unchanged at 89.62 yen and $1.4490 versus Japan's yen and the British pound.

Continue reading Despite rising deficit, haven status continues to support dollar

Despite rising deficit, haven status continues to support dollar originally appeared on BloggingStocks on Wed, 04 Feb 2009 17:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>British poundbudget deficitcurrenciesdollareurogoldnational debtoilyenWed, 04 Feb 2009 17:15:00 EST<![CDATA[U.S. budget deficit remains serviceable, provided U.S. economy grows ]]>http://www.bloggingstocks.com/2009/01/26/u-s-budget-deficit-remains-serviceable-provided-u-s-economy-g/http://www.bloggingstocks.com/2009/01/26/u-s-budget-deficit-remains-serviceable-provided-u-s-economy-g/http://www.bloggingstocks.com/2009/01/26/u-s-budget-deficit-remains-serviceable-provided-u-s-economy-g/#commentsFiled under: , , ,

One of the biggest misnomers in the current fiscal stimulus debate concerns the United States' ability to service its budget deficit and national debt (pdf).

Provided the fiscal stimulus package is passed, the national debt ceiling will increase to $12.1 trillion from the current $11.3 trillion.

Deficit approaching intolerable levels?

Economic conservatives, market absolutists, and the like argue that the annual budget deficit and national debt are approaching intolerable levels. In truth, what they're arguing against is a needed government intervention and New Deal-type spending required to jump-start the U.S. economy -- even if it means the economy will plunge into a deeper recession without the stimulus. It seems some economic conservatives would rather see the nation's economy suffer, than to violate one their flawed economic theories.

Continue reading U.S. budget deficit remains serviceable, provided U.S. economy grows

U.S. budget deficit remains serviceable, provided U.S. economy grows originally appeared on BloggingStocks on Mon, 26 Jan 2009 17:45:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>budget deficitfiscal policyfiscal stimulus packagegdpKeynesiansmonetaristsnational debtPaul KrugmanU.S. economyMon, 26 Jan 2009 17:45:00 EST<![CDATA[Treasuries rise, pushing 30-year yield to 2.95%, lowest since late 1970s]]>http://www.bloggingstocks.com/2008/12/16/treasuries-rise-pushing-30-year-yield-to-2-95-lowest-since-la/http://www.bloggingstocks.com/2008/12/16/treasuries-rise-pushing-30-year-yield-to-2-95-lowest-since-la/http://www.bloggingstocks.com/2008/12/16/treasuries-rise-pushing-30-year-yield-to-2-95-lowest-since-la/#commentsFiled under: ,

How'd you like to borrow money for 30 years at 2.95%?

The U.S. government can, and it's making it easier for the federal government to fund its increasing budget deficit, as well as help build the case for a large fiscal stimulus package.

Treasury prices continued to rise Tuesday, pushing the yield on the 30-year government bond down to 2.95% -- close to its lowest level since regular sales began in 1977. The 10-year note yielded 2.48%; the 5-year note, 1.47%.

Further, while it may seem like a contradiction to have long-term interest rates fall at a time the U.S. government is on-track to record at least a record $600 billion (and probably much higher) budget deficit this fiscal year, there's a method to institutional investors' madness, so says economist Richard Felson.

"The landscape for private investment is poor. We have a recession on all continents, and there's a lack of places to deploy capital productively. That dearth of opportunities for return on investment plus fear of losses from toxic assets is driving investors to the safer investments, and one of the safest is the U.S. Treasury," Felson said. "It's the preferred place to be until the major economies start to recover."

Continue reading Treasuries rise, pushing 30-year yield to 2.95%, lowest since late 1970s

Treasuries rise, pushing 30-year yield to 2.95%, lowest since late 1970s originally appeared on BloggingStocks on Tue, 16 Dec 2008 10:40:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bond marketBondMarketbondsbudget deficitfiscal stimulusinterest ratesinthenewsnational debtTreasury billsTreasury notesTue, 16 Dec 2008 10:40:00 EST<![CDATA[Flight-to-safety lowering interest rates, helping U.S. finance deficit]]>http://www.bloggingstocks.com/2008/12/15/flight-to-safety-lowering-interest-rates-helping-u-s-finance-d/http://www.bloggingstocks.com/2008/12/15/flight-to-safety-lowering-interest-rates-helping-u-s-finance-d/http://www.bloggingstocks.com/2008/12/15/flight-to-safety-lowering-interest-rates-helping-u-s-finance-d/#commentsFiled under: , ,

Imagine paying the United States government to hold your money for three months.

The condition appears to turn investment theory on its head, but that's what investors are doing in today's uncertain, risk-averse markets.

Foreign investors are accumulating Treasuries at the fastest pace since 1988, up 12% since September, Bloomberg News reported Monday, citing U.S. Federal Reserve data. They are becoming institutional investors' mattress. The tactic is driving Treasury rates to record lows: the 2-year note has fallen to 0.76% from 3.11% on June 13, while the 3-month Treasury turned negative on December 9 for the first time.

Meanwhile, the 10-year and 30-year Treasuries have fallen to 2.55% and 3.04%, respectively -- not much return on your investment, but that's beside the point: investors currently are more concerned about the return of their investment than the return on their investment.

Still, economist David H. Wang said there's an upside and a downside to the lower interest rates for Treasuries.

Continue reading Flight-to-safety lowering interest rates, helping U.S. finance deficit

Flight-to-safety lowering interest rates, helping U.S. finance deficit originally appeared on BloggingStocks on Mon, 15 Dec 2008 10:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>budget deficitflight to safetyinterest ratesinthenewsnational debtrisk aversionU.S. Treasury billsU.S. Treasury notesMon, 15 Dec 2008 10:29:00 EST