US Treasury is doubling down on buybacks to try to supress the yield

I’m not discrediting your intellect, but you post financial negative news on the regular. Have been for years.
And you’ll be right, eventually.

Money is fake, and we’re all playing on a delicate house of cards together. Nothing you or I can do.
Central banks and fiat currency run our collective, amigo.

This kicking the can down the road is coming to a head. If Japan dumps dollars, the value of your dollar falls.

quote:

---

I’m not discrediting your intellect, but you post financial negative news on the regular. Have been for years.
And you’ll be right, eventually.

---

Thing thing you don't realize is that I've been right all along under normal circumstances

All of my posts, including this one, show how they have manipulated markets from RE, stock, bonds, etc to keep kicking the can down the road and now the cost to service the debt is out of control, yet we are still printing money to double buybacks to keep the yield in check.

Bessent basically said two days ago they will torch the stock market to keep the yield in check. The yield is the breaking point it seems.

People much smarter than you or I could articulate it better, but in layman's terms, it's insanity and unsustainable. The question is not if, but when they run out of ammo to manipulate things, what happens next?

ETA: I have mostly called out the RE market for a few years and have been right. These things never happen overnight but anyone who does what I do, or has been in RE as long as I have, could have seen the writing on the wall. Too many were making too much money and didn't want the ride to stop so they ignored and downplayed it. I was right and the market is currently showing I was correct. The bleeding in RE has only just begun. If the yield gets worse, the little bit of RE transactions still happening will dry up.

Builders aren't offering $60K in price incentives because RE is hot.

quote:

---

The question is not if, but when they run out of ammo to manipulate things, what happens next?

---

The answer is always the same ... war or substantially increased inflation.

Pick your poison ... to this point, they've chosen the latter.

At some point (next Democrat executive?) ... they'll flip the playbook back to the former (WW II, Vietnam, etc).

Same as it always was ...

I have nothing of value to add to this thread, but I do like when you post them because I learn a lot.

Stout is pretty much spot on economic wise in his posts.

A big issue is the Feds have gotten into a habit of rescuing people, banks, companies that should have failed.

When people see that the Feds will bail them out, people become more reckless and eventually cause even bigger issues down the road.

You need to let failure happen.

quote:

---

If you don’t own hard assets right now, you’re going to get left behind.

---

Go ahead and pencil me in the bottom bracket

quote:

---

but don’t own debt as an asset.

---

I get that. I have paid cash for a few properties and cashed out refis on others. I went with a 30-year fixed at a slightly higher rate because anyone taking out an ARM right now is asking for pain. The debt I own is being paid by others, so I don't see it as bad.

In LC, due to the LNC facilities and new bridge being built, we have a ton of out-of-state workers looking for a place to live. I put a little house for rent on Sunday that should only get $1500 per month, but I put it out there for $1800 and have had about 20 people living here working on the LNG facility contact me so far. Just have to get appointments made to let them see the house.

Read this book