Friday, October 20, 2023
Vanguard's long term Treasury fund, started in 1986, set a new all time low price record yesterday: What a coincidence
VUSTX fell to $7.37 yesterday, October 19, 2023.
Until the bond debacle of 2022, the lowest price ever was set way back in 1987, also on October 19, aka Black Monday, when the S&P 500 crashed 20.47% in its worst single day ever.
2022's new all time low for VUSTX at 8.16 had occurred on October 24, missing the anniversary of the old all time low by just three days. Also a very odd coincidence.
The debacle has only continued in 2023, and VUSTX prices haven't seen $8 since September 22nd.
ZIRP since the Great Recession is ultimately to blame for the current mess in long term Treasury securities. The clamor it created for yield drove bond investors long, culminating in the highest nominal prices ever paid for long term UST in March 2020, and the lowest yields. 30Y UST yield crashed to 0.99% on March 9, 2020, 20Y to 0.87%. Yields across the board in 2023 for 2Y to 30Y have set records for this cycle in October. Yesterday 20Y demanded 5.30%, 30Y 5.11%.
No one wants that 2020 and prior junk now, so wherever it sits it's causing collateral problems, at banks, insurance companies, pension funds, et cetera. And on the Fed's balance sheet: As of October 18th the Fed has $1.503922 trillion of UST maturing in more than 10 years on its balance sheet. It basically has to keep it until it matures, and it pays it very little to return to the Treasury as it does.
Are prices done falling?
Confident pretenders said so a year ago this month, and now here we are with $TLT investors down another 12.22% since then.
Given the obscene overvaluation of stocks, and the demand for higher yields by bond investors, cash still seems the safest place to be. VMRXX, Vanguard Cash Reserves Federal Money Market Fund Admiral Shares, has returned 4.00% ytd. You continue to lose to inflation, however.
Nothing is ever perfect.
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| 1987 high and low |
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| 2022 high and low to the left, all time high and low to the right |
Thursday, October 19, 2023
Judge Ann M. Donnelly, appointed by Obama in 2015, sentences "Ricky Vaughn" to 7 months in jail for trying to dupe stupid people on Twitter to vote for Hillary by text message
In the immortal words of Harry Reid, Hillary didn't win, did she.
Thank you, Ricky.
Wednesday, October 18, 2023
Here's a nice picture of Obama and the Nation of Islam's Calypso Louie, just because it's a lousy Wednesday
Calypso Lou, the anti-Jew.
Disgusting New York Times fans the flames against Israel: Simply repeated Palestinian claim of Israeli strike on hospital, changed it to strike on hospital, changed it again to hospital blast
It was an errant malfunctioning Palestinian rocket, one of the thousands Hamas and Islamic Jihad have launched against targets in Israel but which the media do not report.
The number 500 dead is also phony. The claim was made almost immediately after the blast and just keeps getting repeated. There was no count. The place is in chaos. The missile exploded in the parking lot, not on the hospital.
Tuesday, October 17, 2023
Barack Obama, 2015 author of today's moral equivalence on Hamas in the Democrat Party
"Lest we get on our high horse [about ISIS] . . . remember that during the Crusades and the Inquisition, people committed terrible
deeds in the name of Christ. In our home country, slavery and Jim Crow
all too often was justified in the name of Christ.”
It's still December 2015 when Donald Trump mocked Rand Paul about ISIS: “So they can kill us, but we can’t kill them?”
Paul again condemned Trump’s call to shut down parts of the Internet by arguing that to do so would violate the First Amendment, and he blasted Trump’s call to kill the families of terrorists as a violation of the Geneva Conventions.
“So when you ask yourself, whoever you are that think you’re going to support Donald Trump, think: Do you believe in the Constitution?” Paul said. “Are you going to change the Constitution?”
While Paul spoke, Trump dismissed the senator with a wave of his hand. When it was his turn to respond, Trump said: “So they can kill us, but we can’t kill them? That’s what you’re saying.”
Here.
LOL, there is no Democratic Party unity to crack in the first place when their own president's mind is divided on Gaza
Dem unity cracking on Israel-Gaza conflict...
Biden warns Israel against occupying Gaza as ground invasion appears near
Biden is throwing a bone to his Hamas wing, that's all. Pure politics, not principle.
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