i think the 30 year at 2.72 is more crazy.... 20 more years of duration only 100 basis pts more yield..

Yep- this is indicative of deflation trade-
No real growth in economy as far as the horizon-
So basically it is a lifeboat trade

Right - so the obvious financial advice for our retired folk is to chase YIELD in the stock mkt - WINNING! says Ben...

1.60 make that 1.598.

1.575 and falling.

Barry Ritholtz has it that 1.54% is the all-time low, established in 1790, and matched on April 5, 1946:

http://finance.sfgate.com/hearst.sfgate/....

1.536%!

The bell tolls for thee!

And gold goes green...

Just wow.

we are watching the death of a currency

Vegas: What? (or are you referring to the Euro?)

U$D is going straight up, and I'd remind you that Yen has been going up for 2 decades in a deflationary no yield environment.

Yes Ram
the EURO

Yep. This is where the Schiffs get it wrong. "Inflate or die" eh? How's it working for the Japanese?

Yep, I agree with you there Vegas. Fun to watch in a train wreck sort of way.

They confuse capital with credit and this is the result.

the ass end of the titanic went straight up too right before it didn't ;)

I see the euro as the bow and the dollar as the stern as the people rush out of the euro to the stern of the ship

derivatives and debt are the iceberg

Back up to 1.59. Fast market today, eh?!

30Y just fell 100 pips

Right, Ramthebulls, these post-Europe-close reversals are becoming a habit for US equities.

The trillion dollar question is how do the major insurers meet the obligations of their annuity books of bus.? which one will be first to wander off the reservation and start chasing yield in junk just to meet obligations? and they make the banks look like plankton when it comes to too big to fail. Interesting times we live in.

Not a deflationary victory either.

Stocks are way higher than The deflationists predicted and they will stay that way with bond yields this low.

Equity yields are too high vs treasuries and the sheeple will stay there because there is no yield anywhere else.

Each crisis is different. It looks like this one will have a higher dollar and elevated stock prices. The victory goes to the disinflationists.

No they won't Edge. Just watch. Japan thought this would work too (and it looked like it might for a while.) It didn't.

We'll see Gen.

Where are they gonna go for returns? All of these baby boomers are so desperate to keep their 5% income rolling in.

You may be right eventually but it's going to take awhile IMO because people don't want to lose their standard of living.

It'll take a stampede out of equities in order to force their hand.

How have Japan been paying out their pensions with yield at nothing for ten years?

Quote:

Where are they gonna go for returns? All of these baby boomers are so desperate to keep their 5% income rolling in.

You're missing something here -- you need increasing leverage to prop up P/Es and thus prices. That means more borrowing since all money is debt-backed.

That's the problem when you hit the wall. The rotation moves the market back up (look again at the Nikkei) but it then stalls, as the rotation is then complete and there's no more inflow as there's also no more credit expansion.

It doesn't work. What someone WANTS (e.g. "return") can't violate the mechanics of what they can have.