Reformed Chicks Blabbing

Reformed Chicks Blabbing

Weak demand at US Treasury bond auction

posted by Susan Johnson | 1:09pm Friday May 8, 2009

This shouldn’t surprise anyone with Obama and the Democrats spending trillions of dollars in deficits for years to come and now it just became more expensive for them to do so:

Weak demand at a Treasury bond auction touched off worries in the stock market Thursday about the government’s ability to raise funds to fight the recession.
The government had to pay greater interest than expected in a sale of 30-year Treasurys. That is worrisome to traders because it could signal that it will become harder for Washington to finance its ambitious economic recovery plans. The higher interest rates also could push up costs for borrowing in areas like mortgages.

And just wait until the deficit explodes after they add government run health care, they’ll be paying a lot more to try to service the debt.
(via)



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MH

posted May 8, 2009 at 9:10 pm


I wouldn’t go near long term bonds right now. When interests rates rise you’ll lose principal as bond prices fall. Given how low interest rates are now they’ll have to rise.
I checked the yield curve and the really annoying thing is that all bonds with terms of ten years or less are losing money relative to inflation. So even buy and hold is a lose too.
All this means that bank interest is an even worse deal than it usually.



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anonymous reincarnate

posted May 12, 2009 at 3:20 am


oh my! hotair.com as your reference? quelle surprise!
and “government run health care”? what are you, a 3rd grader only capable of regurgitating lies from the republican party? educate yourself.
http://www.factcheck.org/politics/government-run_health_care.html



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