Tim Geithner Killed Treasurys!!!
Pic credit: Salon.com
Uh, that's how Bloomberg made it sound. I could be blowing it out of proportion but come on now, this is me we're talking about here.
In-Geithner-We-Trust Bond Market Gets Lowest Yield (way to report with fucking hilarious headlines Bloomberg!):
Less than a week after deflecting calls for his resignation, Timothy Geithner sold bonds on behalf of U.S. taxpayers at the lowest yields on record in a show of confidence in the Treasury Secretary’s policies.
Even as the nation’s debt increased by $1.15 trillion this year to $6.95 trillion in October, the government’s interest expense under Geithner dropped 15 percent, the biggest decrease since before 1989, according to data compiled by Bloomberg. The Treasury auctioned $44 billion of two-year notes Nov. 23 at a yield of 0.802 percent, the lowest on record.
Rising demand shows investors believe Geithner, 48, is striking a balance between policies to promote growth and the borrowing needed to finance a $1 trillion deficit. The economy will likely expand 2.6 percent in 2010, after the government and Federal Reserve lent, spent or committed almost $12 trillion to keep financial markets from collapsing, according to the median estimate of 63 analysts surveyed by Bloomberg. That’s in line with average growth of 2.63 percent from 2002 through 2007.
“There have been many criticisms of him, but he’s done a good job,” said Tsutomu Komiya, who invests in Treasuries for Tokyo-based Daiwa Asset Management Co., which oversees $77 billion. “He brought stability to the financial markets. We can’t help but invest in Treasuries because of their safety and liquidity.”
"we can't help but invest in Treasuries"
Have you guys ever seen that A&E show Intervention? Those people couldn't help it either but with a good intervention and some therapy, we can get you off those Treasurys and into some truly safe investments like mattresses, wheelbarrow companies, and of course gold.