define('DISALLOW_FILE_EDIT', true); define('DISALLOW_FILE_MODS', true); Comments on: Pay No Attention to That Flashing Red Light https://norunnyeggs.com/2010/03/pay-no-attention-to-that-flashing-red-light/ The repository of one hard-boiled egg from the south suburbs of Milwaukee, Wisconsin (and the occassional guest-blogger). The ramblings within may or may not offend, shock and awe you, but they are what I (or my guest-bloggers) think. Mon, 22 Mar 2010 17:53:53 +0000 hourly 1 https://wordpress.org/?v=6.9 By: J. Strupp https://norunnyeggs.com/2010/03/pay-no-attention-to-that-flashing-red-light/comment-page-1/#comment-38517 Mon, 22 Mar 2010 17:53:53 +0000 https://norunnyeggs.com/?p=8482#comment-38517 “Yup, in short order, we the American taxpayer are paying more than Warren Buffet and his green companies for debt. Hell, we’re even paying more now than the Germans!”

Haha. Yeah? And Buffet lost his AAA bond rating last month. Oops. So much for that being a problem:

http://www.bloomberg.com/apps/news?pid=20601087&sid=aMPmZMzZ.V30

The 10-year is yielding 3.66% which is the same as way back in the good ol’ days of 2008.

http://www.bloomberg.com/apps/quote?ticker=USGG10YR%3AIND

Auctions are strong for short and long treasuries. I notice you didn’t mention anything about the yield on Japanese treasuries. As for the Germans, the bund is the primary beneficiary of a flight to quality from the greek crisis. Same goes for U.S. treasuries during our crisis. Same exact thing. You can’t look at these things in a political vacuum.

“…companies don’t seem to be borrowing as much anymore. Huh, why do you suppose that is?”

They don’t have any customers. If they really feared future inflation, they would spend money now. They don’t. They fear deflation and they should. Especially once Uncle Sam’s stimulus will begin fading out later this year.

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