All Signs Are Go For The Last Great Ponzi Scheme

"The Treasury had a heavy calendar this week, but the new supply won’t settle until May 15. After Tuesday, Treasury supply will not pressure the market until the end of month settlement of notes and bonds. But the market has other problems and they are big ones. This 2 part report examines key forces that impact US stock and bond prices each week. The Treasury part focuses on those directly affecting the Treasury market, with an eye to their impact on stocks. (Subscribers click here to download complete report in pdf format.) The second part, focusing on the Fed and the macro forces of liquidity will follow on Monday.

The Treasury will continue to benefit from instability in Europe. Clearly there are more defaults in our future. European investors and depositors will continue to flee their banking system for the apparent “safety” of the US. The JPM situation will raise additional fears. That will keep Treasury yields suppressed for a few more months. The short term technical target on the 10 year is now 1.68. That should continue to correlate with a bearish trend in stocks and it may or may not be the last word. It is difficult to forecast just how low yields will go in the final blowoff of the Last Ponzi Game Standing, the US Treasury market..."

at http://wallstreetexaminer.com/2012/05/11/final-blowoff-of-the-last-ponzi-game/#ixzz1umDejaCx