Risk is Rising

I always enjoy following the market’s twists, turns, ups and downs.  But this is serious business as well, because it is our livelihood, our money and our financial survival that is at stake.

For perspective, let’s look at the striking view provided by the yield curve measuring long term treasuries vs. t-bills.  The story of this chart is one of increasing moral hazard, of a game with ever higher stakes for winners and losers and it is a story in which the sustainability of the current system is called into question.

Long term interest rates have risen strongly (weak demand for the government’s long term debt) despite the Fed and Treasury’s best efforts to talk them down and Larry Summers’ red herrings thrown out for public consumption. Read more about stock market risk…