Bloated US debt burden drives bond rout

Bloated US debt burden drives bond rout

www.reuters.com

* Selling takes on momentum of its own

* Yield curve at steepest ever

* Mortgage investors exacerbate downturn

The downdraft in bonds was so heavy it actually dragged down the U.S. stock market, inverting the more normal relationship where U.S. Treasuries tend to track equities.

(visit the link for the full news article)

Normally I'd post a story like this in the "meltdown" forum, but this deserves to be here. Yes, its financial news but its also news news...just about the biggest and most important piece of news in a long, long time. Like, your entire lifetime.

In the early 1990s, Democratic political strategist James Carville said that he wanted to be reincarnated as the bond market, because it "can intimidate everybody." It is the underpinnings to the entire world economy. And it just died. Poof.

As a trader friend of mine said, this is "like watching the mainframe that houses the reality matrix short out in front of your eyes." (his words not mine). The wheel is moving, folks, but the hampster is dead.

www.reuters.com
(visit the link for the full news article)