Topic: It's in the bag, man

[charlesoakwood]

Today, Glenn Beck spent the first half of the show explaining that Japan's nuclear problem was about number three on the list.  Number one on the list is the Bond problem.
The Fed buys 70% of our Treasury (figure that), [China is number one] and Japan is the number two purchaser of our debt (think credit card/ATM).  Japan now needs all the money it can get so it will, as it historically has done, sell our treasury bonds.

Selling our Treasury Bonds is the equivalent of tearing up our second biggest credit card.
--- _ That's where he left the topic.

 Uncle Nippon tore up our credit card.  So what happens now?

[hemm]

Today, Glenn Beck spent the first half of the show explaining that Japan's nuclear problem was about number three on the list.  Number one on the list is the Bond problem.
The Fed buys 70% of our Treasury (figure that), [China is number one] and Japan is the number two purchaser of our debt (think credit card/ATM).  Japan now needs all the money it can get so it will, as it historically has done, sell our treasury bonds.

Selling our Treasury Bonds is the equivalent of tearing up our second biggest credit card.
--- _ That's where he left the topic.

 Uncle Nippon tore up our credit card.  So what happens now?

Ok so is that a bad thing or good thing?

[Libertas]

For The Regime?  Bad?  Think just anybody has cash laying around to buy our paper?  Our paper will not generate the prices it normally would at auction, and we'll still have to pony up P&I on face.  (They'll sell at a discount)

On the flip side I would normally say this is good, as a sane person would reduce the number of offerings to keep the price up, but this Regime in unsane and needs every penny it can scrounge, it is incapable of reducing spending, so no matter how hard we have to bend over for it, Obama will bend, so it looks bad all around to me!

We'll see if any one else picks up the slack, but that is not something you can bank on right now.

[rickl]

If you're in hock up to your eyeballs, cutting up your credit card will help you stop going even further into debt, but it won't help you pay down your existing debt.  And if you're depending on borrowing money to pay your existing bills, well, then you're pretty much screwed.

Ideally, one should cut up one's credit card before one is in hock up to one's eyeballs.

[Libertas]

Yeah.  I guess The Regime is not 14th Baktun compliant!

 

(Damn, I love that logo!)

 

[Sectionhand]

Look for a slaughter house today on the Dow's opening .

[rickl]

The Nikkei lost 10.6% on Tuesday (Japan time is ahead of us).

[Libertas]

I saw that this morning and had the same thought.  Markets hate uncertainty and psychologically feed off one another, and when perception becomes reality bad can be made worse.  Nikkei lost 6% yesterday, that's over 16% lost in 2 days, and the pumping of 10T yen into the system with plans of another 15T had little effect to stabilize the system.  Their slide isn't over yet, and it will ripple around the globe.