Thursday, December 10, 2009

Rick Santelli: "I give this one an F"

As I mentioned earlier today in this post:

Really, where do you think the spending is coming from to prop us this economy? It sure isn't coming from you and I. It is coming from the government. Have you noticed the explosion in Federal and State contracts? This is how the economy is staying alive. What happens when the government can't borrow anymore money to spend? China already doesn't want to loan us anymore. I don't really think the oil states do either. Check out this chart. Once our credit card is cut off and the federal spending stops we are in for a rude awakening.

Today's 30 year treasury auction, according to CNBC's Rick Santelli, was a failure. We tendered $31 billion in treasuries today and only $13 billion was accepted! Wow, isn't that great for a "risk free" investment. Check out this spike in 30 year yields during the auction. The government's cost of borrowing is starting to grow people. This kind of borrowing and spending ABSOLUTELY cannot last forever. When it out.

30 Year Treasury Yield

30 Year Treasury Auction Results

source: ZeroHedge

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