Tuesday, December 09, 2008

More Historic Data ....

We're not breaking any news since Drudge already linked to this story, but for the first time ever investors are now paying for the right to lend the Government money. You read that right. Lend the US Government $1,000 for three months and at maturity you will receive a plump check for $999.75. Huh? Who in their right mind would do that? Well, it seems that the flight to safety has been taken to an extreme and nothing outside of US Government Debt seems acceptable right now.

"Treasuries rose, pushing rates on the three-month bill negative for the first time, as investors gravitate toward the safety of U.S. government debt amid the worst financial crisis since the Great Depression.

The Treasury sold $27 billion of three-month bills yesterday at a discount rate of 0.005 percent, the lowest since it starting auctioning the securities in 1929. The U.S. also sold $30 billion of four-week bills today at zero percent for the first time since it began selling the debt in 2001. "

So while the stock market has meandered along over the past couple of weeks and sits about 15% above our November lows, the bond market is acting like the world is coming to an end. One of these two markets is going to be right and historically, the smarter money is in the bond market. We'll see how the next couple of weeks play out.

Well, just when you think that US dollars can't buy anything interesting....check out this video that hit the web today -- Billions in R&D can produce some really cool toys. Meet Lockheed Martin's new Multiple Kill Vehicle *.....

I for one, welcome our new robot overlords :)

* The name is more menacing than the reality - apparently it's a self contained unit for diverting inbound missiles, but all I see when I see the video is that crazy robot that runs wild in Robocop.

Thankfully, you can still manage to spend $170+ on a pair of UGG (ly) boots from Australia.

Merry Spending!

1 comment:

Unknown said...

Well, setting aside the 'heat death of the universe as predicted by the bond market' top, (your serious business), I'm glad to see you too welcome the coming of the overlords.