The Treasury bonds can raise handsomely this weak with overall bearish news on the economy
Sam Adelton
May 7, 2007

This week is perhaps the one the bond market was waiting for. Decidedly the pendulum will shift from growth to recession side after all the data is out this week. The news will have more confirmation in later part of the month and in the coming months. The bias of Fed is finally shifting from tightening to reversing the damage already done. They know the tactic of creating artificial liquidity did not work. It just creates commodity and asset inflation while real productive part of the economy slides into deep deflation.

The increase in unemployment this time will be irreversible for long time. The smoke of deflation will finally be revealed as real. Inflation adjusted growth is already negative. The nominal and real GDP both will go negative by the third quarter and stay negative for a very long time.

The Treasuries will rise like never before. They love the smoke of deflation. You can expect the 30-year bonds to rise in price by 30% in the next two to three years. The massive jump in Treasury prices will happen between now and the end of the year as Fed finally realizes they are trapped by deflation like never before since 1929-33 Great Depression.

The Treasury bonds can raise handsomely this weak with overall bearish news on the economy
Sam Adelton
The massive jump in Treasury prices will happen between now and the end of the year as Fed finally realizes they are trapped by deflation like never before since 1929-33 Great Depression.
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News this week shows economy is headed for a deep recession slowly but steadily – time to buy bonds an sell stocks
Sam Adelton
When Nikkei was in upper 40,000s and was rising every day, no one could believe Nikkei will fall below 10,000, Japanese economy will hit by deflation and after twenty years, Nikkei is still below 18,000.
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The collapsing mortgage market loss can total more than a trillion dollar by the end of the year –what is the impact on stocks, bonds and currencies?
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The mortgage bankers scared like never before. The real estate collapse has just started. The artificial liquidity was unable to hold the real estate market any further.
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News on corporate take over deals reaching options floor a few days before actual signing of the deal and breaking news - worst insider scandals in the history of the stock market?
Alan Hershey
It is the responsibility for the stock exchanges and options exchanges to control and notify the SEC of such happening. They did not. Some are saying the stock exchanges themselves are involved in the scam.
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Weaker corporate bond prices suggest the debt market is growing concerned about corporate earnings in the second half of the year
Peter Oberois
It is commonly known as divergence in the market. Divergences eventually get corrected through nasty and lengthy bear markets or sharp drop in market prices.
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French unrest with conservative leadership may be a reason for selling Euros
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The turmoil will spread into other parts of the Euro zone damaging the economics of the region. It is time for selling the Euro.
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