cavelamb himself wrote:
Today is off to an interesting start:


http://abcnews.go.com/Business/Perso...5381997&page=1


A stumbling economy and a potential federal bailout of home mortgage
giants Fannie Mae and Freddie Mac appear to have prompted some traders
to question even one of the most stable investments: U.S. Treasury
bonds. treasury bonds
The benchmark 10-year bond note yield fell and its price rose in the
wake of a grim economy... Expand
The benchmark 10-year bond note yield fell and its price rose in the
wake of a grim economy assessment by Federal Reserve Chairman Ben
Bernanke.

Concern that the government may take on trillions of dollars of debt
from mortgage giants Fannie Mae and Freddie Mac is creating the
perception of instability in the bond market.

As first reported by the Wall Street Journal, certain types of
derivatives trades that profit from the perception of instability in
the bond market have increased. Last week, the price of protection
against a government default on a 10-year Treasury note doubled.

"There are some cracks in the confidence in the United States and the
financial markets," said T.J. Marta, an analyst at RBC Capital
Markets.

But, analysts and financial advisors told ABC News that Treasury bonds
remain a safe, stable investment.

The price of the benchmark 10-year bond note rose on Tuesday in the
wake of Federal Reserve Chairman Ben Bernanke's grim assessment of
the state
of the economy, sending the bond yield down to 3.83 percent. Bond
prices and yields move in opposite directions.

You have only to think back a little to remember when our President was
hawking T-bills that were in the SS Trust Fund as "worthless paper" Richard.

I'll bet he'd like to take those words back if he could, especially as the
markets are coming around to agreeing with him.
Regime change can't come too soon for America but it's a little late. To bad
the Dems didn't have a decent candidate in 2004.....

--

John R. Carroll
www.machiningsolution.com