someones running for cover

Quote from sobemark:

they are dropping off a cliff at the short end of the curve .... but these are historic moves ...
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This is obviously of considerable concern. We have known that this was coming, well most of us anyway, we did not know the timing and extent.

Looks particularly bad right now. The dollar is in the dumper and may be on the way to the landfill. If the Fed cuts rates any more it is very bad, and if they don't it is very bad. The real estate-mortgage-building industry is in dire straights and that is now close to 25% of the US economy. My hope is that whatever action is taken it does not make matters even worse.

We can get through this, but we have to get our financial house in order. That could be very painful for some folks. This downturn will likely not affect me in any serious way, but i am truly sorry for all those in the building and mortgage industry who will be losing jobs and for those whose net worth is going to take a big hit. As i've said in these forums before: "It costs a lot of money to kill people", roughly 1.7 million for each body blown to bits, perhaps we can not afford to continue this insanity much longer, even if "God is on our side." In the meantime, since we are doing God's work by blowing the arms and legs off of nineteen-year-olds, perhaps God will repay us by rescuing our dollar and restoring the jobs of those who have lost them, or will lose them in coming months.

It's nice to be nice, but it is better to be truthful.
 
like so many things, make a comparison... puts it in perspective

the issue is not (so much) how low the yield is.

(which is low of course)

it is that it is at ALL TIME lows when taken in relation to the fed funds rate

iow, the (fed funds rate - the 3 month rate) is the largest it has been

THAT is amazing

kind of how the dow made new highs not too long ago.

but in relation to currency (USD) *or* gold, it was nowhere NEAR new highs

it pays to put absolute #'s in reference to other benchmarks.
 
Makes perfect sense if you think about it. No one wants to commit their money to longer term instruments until we get over this subprime/credit mess.
 
Quote from whitster:

like so many things, make a comparison... puts it in perspective

the issue is not (so much) how low the yield is.

(which is low of course)

it is that it is at ALL TIME lows when taken in relation to the fed funds rate

iow, the (fed funds rate - the 3 month rate) is the largest it has been

THAT is amazing

kind of how the dow made new highs not too long ago.

but in relation to currency (USD) *or* gold, it was nowhere NEAR new highs

it pays to put absolute #'s in reference to other benchmarks.
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isn't there a potentially great trade here -- ie short the 90 day t-bill against long the 30 day fed funds that comes due 90-150 (ie dec or jan contract) days from now?

trying to find a futures for 90 day t-bills ... I see GTB on IB, but no data under that item.

anyone have an idea of how to trade this?
 
Sorry guys I own up it was my fault! I just moved all my IRAs from "prime money market" to "treasury money market" today....100% US government backed.

Prime holding of AAA, AA and A doesn't mean anything if nobody wants commercial paper or investment ratings are bogus.
 
Quote from SethArb:

thought I would share this quote I read today on bloomberg
wires

-Bills right now are trading like dot-coms.-

:eek:
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If that correllation is true, then Greenspan will go to prison :cool:
 
Is there risk of money market nav's falling below $1?

Which specific markets would have to deteriorate to do this?

I see Vanguard has federal and treasury mm in addition to the standard Prime one. Could it happen to any of them?

Maybe a bank savings account might work for a few months? or some CD's?

I have lots of questions, hope someone can help.
 
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