12/08/01 The Daily Reckoning
Weekend Edition
December 8-9, 2001
Paris, France
By Addison Wiggin
MARKET REVIEW: Slaughter In The Bond Market
For the first time in months, wondering what the Fed will do at their next meeting. is actually interesting. Why?
Well, according to Lance “Crash” Lewis, over at the Prudent Bear booth, “The last 3 or 4 weeks have been absolute killers in the bond market. Bond managers have given back their entire year in a matter of a few weeks.” Friday, saw new lows in the 5-yr, 10-yr, and 30-yr notes. And the yield on the 10-yr soared to 5.14%.
Lewis: “All the confetti Uncle Al is printing up in order to levitate the stock market is killing the bond market (along with a whole host of other factors), and he can’t turn around and try and bail out the bond market without killing stocks. Meanwhile, the economy is still showing very little (if any) signs of a recovery.”
It’s no foregone conclusion that we’ll see lucky rate cut number 11. Nonetheless, Easy Al and Co. will meet on to decide which buttons to push…which levers to pull… and what spin to send consumers into the Holiday buying season with.
Alas, even the Fed, we suspect, gets what they deserve …and not what they expect.
Enjoy your weekend,
Addison Wiggin
The Daily Reckoning
THIS WEEK in THE DAILY RECKONING
by Bill Bonner
12/07/01 PEARL HARBOR
“…In 1941, Axis military power had been in a bull market for nearly a decade. People don’t think clearly in a bull market, and their imaginations are dull. They can only see ahead of them what they’ve just experienced. It wasn’t until 1942 that Axis power peaked out. Then, the thinking began and imaginations began to work again. But by then it was toolate…”
12/06/01 FIRES OF ENTHUSIASM
“…Stock buyers who bought for the right reasons undefined because stocks were cheap undefined in 1982 have already made their money. Unless they are greedy or stupid, they have already taken the money off the table. Those who buy for the wrong reasons now undefined because they think stocks always go up undefined will get what they deservetoo…”
12/05/01 THE INNOVATION CYCLE
Guest Essay by John Mauldin
“…In the last decade, a rising tide lifted all boats. Now things will start to be a little different. As always, new innovations will bring rewards to investors. But the “winners” will be investments that focus on absolute return strategies…and value basedinvesting…”
12/04/01 SUGAR PLUMS
“…Investors are getting ready for Christmas… The big bottom of their dreams has come and gone – they believe. Visions of sugar plums dance in their heads. Sadly, the more the candies twist in their minds, the less likely that investors will get what they want from Santa…”
12/03/01 THE FABULOUS DESTINY OF ALAN GREENSPAN
“…Mr. Greenspan has everything he needs to get the economy back on track…except theessentials…”
Bill Bonner
Since founding Agora Inc. in 1979, Bill Bonner has found success and garnered camaraderie in numerous communities and industries. A man of many talents, his entrepreneurial savvy, unique writings, philanthropic undertakings, and preservationist activities have all been recognized and awarded by some of America's most respected authorities. Along with Addison Wiggin, his friend and colleague, Bill has written two New York Times best-selling books, Financial Reckoning Day and Empire of Debt. Both works have been critically acclaimed internationally. With political journalist Lila Rajiva, he wrote his third New York Times best-selling book, Mobs, Messiahs and Markets, which offers concrete advice on how to avoid the public spectacle of modern finance. Since 1999, Bill has been a daily contributor and the driving force behind The Daily Reckoning. Dice Have No Memory: Big Bets & Bad Economics from Paris to the Pampas, the newest book from Bill Bonner, is the definitive compendium of Bill’s daily reckonings from more than a decade: 1999-2010.
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