Uprecedented Financial Turmoil
Lance on Sep 17 2008 at 7:02 pm | Filed under: Economics, Investing, Lance's Page
Today the Fed went to the Treasury and asked for a line of credit. You know, the lender of last resort has had to turn to our Treasury to protect their balance sheet.
Want to see something weird. Go here and look at the treasury market. In the bond world, a 1% move is huge. So check out what has happened in the US Treasury market. Especially the 13 week Treasury bill. It’s yield collapsed by over 97.67% today.
Astounding, truly astounding.
My father who invested (and very successfully) through the late sixties/early seventies nifty fifty era, the bear market of 72-74, the market low in 1981 and Black Monday in 1987 says this is the most incredible market in all of his experience. It certainly eclipses anything I have seen from 1980 forward.
Update: Courtesy of Eddie Elfenbein:
At one point today, the yield on the three-month Treasury bill (^IRX) hit 0.01%!!
One Freakin Bip!!
This means that the risk-free rate is now in direct competition with the underside of your mattress.
