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The Treasury Market Crash, Illustrated

The current move projection on the 10 year Treasury yield is 1.70. Longer projections point higher. I update that regularly in LT.

Let’s look at how much leveraged bondholders have lost since last August. We can use the TLT- the 20 year Treasury ETF as a proxy.

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By my calculation, they’re approaching a loss of 20%. Remember that dealers buy this shit with 90% leverage. At least.  And if you go back a little more in time, they bought a ton of it.

The Fed is waiting on the ground, pretending to be confident that all is well, with excitement that the economy is recovering!

 

Infinite QE Is Coming Despite Skyrocketing Economic Growth by Lee Adler – LIQUIDITY TRADER 

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Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also publish LiquidityTrader.com, and was lead analyst for Sure Money Investor, of blessed memory. I developed David Stockman's Contra Corner for Mr. Stockman. I’ve had a wide variety of finance related jobs since 1972, including a stint on Wall Street in both sales, analytical, and trading capacities. Prior to starting the Wall Street Examiner I was a commercial real estate appraiser in Florida for 15 years. I was considered an expert in the analysis of failed properties that ended up in the hands of bank REO divisions, the FDIC, and the RTC. Remember those guys? I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. I'm not some Ivory Tower academic, Wall Street guy. My perspective comes from having my boots on the ground and in the trenches, as a real estate broker, mortgage broker, trader, account rep, and analyst. I've watched most of the games these Wall Street wiseguys play from right up close. I know the drill from my 55 years of paying attention. And I'm happy to share that experience with you, right here. 

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