Good luck Ben:
NEW YORK (AP) -- Stocks lost ground after a weak auction of U.S. government debt stirred worries about how easily Washington will be able to raise money to fund its economic rescue program.
Investors gave an unexpectedly cool response to a $24 billion auction of 5-year Treasury notes Wednesday, which also sent prices for Treasurys lower.
You wouldn't think that would happen on the day that Ben came into the market to buy Treasuries, but it did. Ben had roughly three times the amount he took submitted to him: SOLD TO YOU BEN, and oh by the way, we're not interested in buying any more of this trash either!
Worse, indirect bidding (foreign interest) essentially collapsed, down by some 50% from last month.
As if that's not bad enough the BOE (England) actually had a failed Gilt auction, with insufficient bids for the amount pushed out.
That's coming to America and soon Ben.
I and a few other astute people who actually believe the market is bigger than any loudmouth with a title (like Bernanke) tried to warn both him and our President that neither of them are capable of forcing people to buy that which they do not wish to buy or fund.
Well Ben?
When I wrote my Ticker from this morning, which I actually penned last night, I had no clue that the first piece of this dislocation was going to happen today.
It did.
Ben came into the market and bought Treasuries today, and in response yields moved.... up?
Oh, and the stock market sold off hard too, down some three hundred DOW points from where it was before these bond "operations."
A blunt, clear warning was issued by the market today Mr. President and Mr. Fed:
Cut that crap about "borrow and spend", along with playing "circle jerk" and "I'm gonna threaten to print money!" out right here and now, or run the risk of the Treasury market imploding in your face, taking what is left of the American economy and our capital markets with it.
Are you listening to investors both here and abroad Mr. Obama and Mr. Bernanke?
You can't force China, Japan and Saudi Arabia to buy our debt. You can only ask, and the results of the bond auction today makes clear that their answer so far can best be described as "Bite Me!"
