Streetwise Professor

I don’t have much to say about today’s kamikaze market.  The truly fascinating thing is how bonds rallied big time–the 10 year Treasury yield fell 25 basis points, the 30 year 21.  German Bund yields were down too, but not nearly as much.  There is a very wild dynamic going on here.  The downgrade is part of it, but the European debt crisis is the bigger driver right now.  It is difficult, however, to deny the interaction between the dual debt crises, which feed off one another.  Everything is relative, in the near term Treasuries look a damn sight better than banks.   In the longer term. . .

And whose brilliant idea was it to send Obama out there, while the market was open, to get up and say . . . well, say the exact same bilge he’s been spewing for the past month?  That went well, didn’t it?  He came.  He spoke.  It sank.

Apparently someone hadn’t remembered their Mark Twain: “It is better to keep your mouth closed and let people think you are a fool than to open it and remove all doubt.”  Even with a teleprompter.  Or should that be, especially with a teleprompter?