- Euro will hit parity with US Dollar, problems will deepen in Europe
- 30 Year Treasury Bonds will yield 3%, 10 Year Treasury Notes closer to 2%
- Real return for Treasuries will be higher with 2-3% deflation (example)
- Sees a double dip recession, slower growth (2% Real GDP growth annually over next decade)
- Decade of deleveraging by financial sector and US consumer will bring deflation, slow growth
- Government replacing private sector deleveraging, how much can they do...
Source: Bloomberg Television
Interesting. What do you think folks, will the the 30-Year Treasury bond breakout and yield double dip from here? What if there's QE2? Also, if the deflationary vortex does indeed hit the markets, how will it affect EPS, the S&P multiple and equity / credit spreads? Check out the charts.
$USB (30-Year US Treasury Bond Price) - StockCharts.com
Where are the bond vigilantes ese?
The 30-Year Treasury bond yield is also at a critical point on the chart, where floor support meets the downtrend line. $TYX closed at 39.63 (3.96%) so Shilling sees another 96 basis points chopped off of yield. 38.2-38.8 (3.82-3.88%) looks like the ultimate floor. Hedge the vigilantes.
$TYX (30-Year T-Bond Yield) - Stockcharts.com
Another interesting view:
Eric Sprott Interview By King World News: Must Hear - Zero Hedge