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View Full Version : WE ARE ON THE VERGE OF A GREAT, GREAT DEPRESSION



Ares
1st June 2011, 11:26 AM
Wall Street is having a hard time figuring out what to do now that the U.S. economy appears to be sputtering and yields are so low, Peter Yastrow, market strategist for Yastrow Origer, told CNBC.

"What we’ve got right now is almost near panic going on with money managers and people who are responsible for money," he said. "They can not find a yield and you just don’t want to be putting your money into commodities or things that are punts that might work out or they might not depending on what happens with the economy.

"We need to find real yield and real returns on these assets. You see bad data, you see Treasurys rally, you see all bonds and all fixed-income rally and then the people who are betting against the U.S. economy start getting bearish on stocks. That’s a huge mistake."

Stocks extended losses after the manufacturing fell below expectations in May and the private sector added only 38,000 jobs during the month.

"Interest rates are amazingly low and that, thanks to Ben Bernanke, is driving everything," Yastrow said. "We’re on the verge of a great, great depression. The [Federal Reserve] knows it.

"We have many, many homeowners that are totally underwater here and cannot get out from under. The technology frontier is limited right now. We definitely have an innovation slowdown and the economy’s gonna suffer."

However, he said he wouldn’t sell stocks.

"Any bears out there better be careful because the dividend yields on these stocks look awesome relative to all the other investment vehicles out there," Yastrow said. "So bears are going to have to find a new way to express their discontent with the U.S. economy."

http://www.cnbc.com/id/43236764

Ponce
1st June 2011, 11:42 AM
Money managers are in "panic" because they just might loose control of money hence the people.

Twisted Titan
1st June 2011, 12:58 PM
dividend yeilds look awesome and that is a reason to risk your life savings to the wolves of wall street.

now that is a strategy for success if I ever did read

gunDriller
1st June 2011, 02:09 PM
dividend yeilds look awesome and that is a reason to risk your life savings to the wolves of wall street.

now that is a strategy for success if I ever did read


"you can buy tax-free bonds with a 6.5% yield for 50 cents on the dollar - so your real yield is 13% !"

that's a spiel i heard at Starbuck's ... wonder how the guy made a living ? ... oh yeah selling bonds.

if there was such a deal, the bonds were with Vallejo or some other bankrupt city.

Jazkal
1st June 2011, 02:52 PM
I hear Greece bonds are up to 25% on a 5 year. You just have to hope they last that long.

EDIT:
My bad, it is the 10 year at 16+ %
http://www.bloomberg.com/apps/quote?ticker=GGGB10YR:IND

JohnQPublic
1st June 2011, 03:11 PM
Watch for more institutional gold purchases in the near future.

Ponce
1st June 2011, 03:22 PM
John? more than now?........like......they already have contracts with mines for the next ten years.....when there is no more for the John Doe (or John Public ;D) then they will go to gold for the currency.