Thursday, September 18, 2008

Treasuries trade at 0%, first time since 1940

Today's market action wasn't good, obviously. But even worse was the failed attempt to recover that occurred in the last few hours. It was looking like the indexes might recover into slightly positive territory, but in the last half hour they lost all the gain and closed at fresh lows. Very bad.

Fundamentally, the fact that treasuries sold near 0% is something that can't be ignored. What the hell is going on?

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