Monday Sept 17 2012 7:25 AM CST
Perhaps the most immediately important column in today's WSJ at least for TMP readers is tucked away on page C2
Long Dated Treasuries Face Tougher Days
In that piece one bond manager after another is quoted affirming our predictions, that bond prices will fall dramatically fueling a stock and commodity rally.
the FED and the ECB are helping everyone out here...they jjust provided a lot of cover to riskier markets to rally.
Here is an interesting quote, few analysts are calling for a significant jump in yields, the ten year hit an all time low of 1.38% in July.
This morning the ten year yield is at 1.8%k, that is a 30% rise in yield from 1.38%, I wonder what the writer considers 'significant?'
A Good Summary of the Problems
Page A 19 features three articles of interest, George Shultz and others notes that the problems are about to go from unmanageable to completely unmanageable
And a Mid East Professor examines our lack of policy in Libya and Joe Klein echoes the WSJ editorial on the opposite page-Karen Lewis, also see page A3, trumped Rahm Emanuel by calling a strike two days after the Dem Convention ended. she knew the Democrats would not alienate their union base, they would have no choice but to cave in to demands and get the schools open again, and she was right. In the newsprint edition there is a photo of a female union delegate decorating her car for the Sunday meeting. The decorations include a plastic human skull, tombstone with skull, a skeleton, and another picture of a skull and cross bones. That photo is not in the on line edition or I would have it here.
This weekend I noted that the harsh social mood we have been predicting has now arrived,from Chicago to Libya. In the original Die Hard movie Hans Gruber and his crew occupy Nakatomi Tower. The police send an Armed RV to the building. Hans hits it with an RPG. That's enough screams Officer John McClane. Hit it again Gruber replies. The union in Chicago did just that in their Sunday vote, hit Rahm and Chicago again with a few more days walk out....just to make sure Rahm gets the point.
Socionomics is hardly an exact science but the mood is certainly on display.
After the big move up last Thursday and the sell off Friday afternoon, as we thought this looks to be a recently typical Monday with a weak openning, bond yields a tad higher.