Interest Rates Continue Up! Can we print money forever?

 
May 26 (Bloomberg) -- Home prices in 20 major metropolitan areas fell more than forecast in March as foreclosures surged, threatening to extend the housing slump.

The S&P/Case-Shiller home-price index decreased 18.7 percent from March 2008, matching the drop in the year ended in February. The measure declined 19 percent in January, the most since data began in 2001.

DETROIT/NEW YORK (Reuters) - General Motors Corp has failed to persuade enough bondholders to accept a debt-for-equity swap, setting the stage for the largest-ever U.S. industrial bankruptcy within days.



Marc's Notes

Markets are gyrating and bouncing around between 8200 and 8500. The longer it bounces around, the more radical the break will be when it does break. Meanwhile interest rates are spiking on US treasury debt and this is the real problem if it persists.The US dollar is breaking down and if it continues, will spell real problems for the US and the FEDS.
Our interest rate funds continue to rise, yet our treasury funds are holding up relatively well. Good for us.
Oil continues up yet gold and silver take a rest. Thats fine. I continue to look to unload our OBAMA plays when they turn into the black.
The big issue right now is the US dollar and all eyes are on its movements. And well they should be. The world may be calling our bluff.
The administration thinks they can print money forever with no ramifications, but they may find out what everyone else who tried it has.
You cant!

GM is headed for bankruptcy me thinks, so the money we "lent" it will be like the money we lent to Chrysler. Gone forever, never to be paid back. Like I said before. If they knew they would file, why did we lend them any money. If we DID'NT know they would file, that means they cant read a balance sheet. Either way is unacceptable. The money that was "loaned" to both auto companies was just a way to payoff the bondholders and employee pensions. The unions represent a big voting block, so they must placate those folks. Have to stay elected you know!

Hold all positions. Accumulate gold, silver and precious metals. Hold all dividend payers. Ok to still hold most of your money in bank CDS and savings accounts. Go for the highest yield you can get insured by the US Govt. Shop around !  Look into credit unions.

Other safe money funds are BIL and SHV. Both of these hold short term US GOVT debt and are more stable the SHY  VIPSX  TIP but dont pay as much.The choice is yours. Balance all US dollar holdings with RRPIX and TBT and any other interest rate LONG fund or short long term bond fund.Confused? Sorry- Email me!

Oil is continuing upward so I look forward to my Harrahs trip if DXO goes to 10 bucks. We will see.

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All for now and email me with your questions!
Marc