Gundlach Says Stocks “Obviously Overbought”, Buys “More Long-Term Treasuries In Last Month Than In Four Years”
Doubleline’s Jeff Gundlach must not be a GETCO algo because unlike the algorithmic programs who are all that’s left of traders in this policy farce of a manipulated market and who are programmed to BTFD especially when there is a massive stop hunt program about to be unleashed on 10-20 ES contracts, he is not buying stocks. Instead the bond manager has closed his July 2012 call when he called the top in Treasurys, and told Reuters that he has bought “more long-term Treasuries in the last month” than in the last four years.” And this coming form the so-called new “bond king.” Gundlach said he started buying benchmark 10-year U.S. Treasury notes in the last month after yields popped above 2 percent, because he sees value there relative to other asset classes, including stocks, which he said are “overbought.”…
Trader alert: This market-leading stock could be in trouble
“There’s a strong chance of a breakdown…”
Peter Schiff: US Debt Crisis Will Be Worse Than Europe’s
Axel Merk: Compares the U.S. to Italy and says that there’s a great threat to the U.S. dollar brewing
Will the Bond Market Cause the Next Crash?
Ron Paul: Here are the facts on the sequester “crisis”
“We are speeding toward collapse…”
Despite what the media and politicians would have us believe, the
United States did not collapse last Friday when the package of
spending reductions known as “sequestration” went into effect.
The financial markets hardly blinked, as they have come to be more
skeptical about these periodic government-hyped “crises.”What had been portrayed as a drastic reduction in government spending was merely a decrease in the projected rate of increase in government spending over the next decade. Under sequestration, government spending increases by $2.4 trillion over the next 10 years rather than $2.5 trillion without it.
So we are speeding toward collapse at only 100 miles per hour instead of 110 miles per hour.
Some in Congress are using the panic over sequestration to justify another surrender of legislative authority to the executive branch. These members want to “pass the buck” on prioritizing federal programs by giving the president, cabinet officials, and high-level bureaucrats authority to set spending priorities. However, it is Congress’s job to set priorities in federal spending.
The drafters of the Constitution gave the legislature the authority over spending because they recognized it was a threat to liberty to allow this power to be concentrated in the executive branch. Congress’s willingness to cede more authority to the executive should be opposed by everyone who values liberty and limited government.
Some of the loudest objections to sequestration have come from the champions of the military-industrial complex. Yet under sequestration, defense spending will still increase by 18 percent over 10 years as opposed to 20 percent without sequestration.
….
Despite the alarm over cuts that are not real cuts, it is clear that the US government is not serious at all about changing its ways. In a recent tour of the Middle East, newly-confirmed Secretary of State John Kerry announced that the US would be sending another $60 million to the rebels seeking to overthrow the Syrian government – in the midst of the sequester “crisis”!
Despite the rhetoric, there appears no intention on the part of the government to take our fiscal crisis seriously or abandon the idea that we should run the rest of the world.
How Ben Bernanke could be creating a brand-new housing bubble
It is important to understand the
magnitude of the stimulus that is propping up the market..
The country is spending more than it makes, to the tune of over $1
trillion per year for the last four years and the foreseeable future.
Households are spending more to keep up a lifestyle supported by
borrowed money.[The U.S. is] an addict using borrowed money to support the drug habit… [L]owering the borrowing cost so the addict can buy more drugs is not the answer.
We are still on drugs. That is why real estate is in a bubble. Here are the specifics:
QE~ (Infinity).
The first part of QE~ is the purchase of $45 billion of treasuries each month. To put this in perspective, the sequester in the news is $85 billion for this year and $1.2 trillion over 10 years. The sequester is less than what Bernanke finances in 2 months. Why worry about the sequester? Bernanke can just add $7 billion a month to the $45 billion and the debt would be covered.
The second part of QE~ is…
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