Whisky Bet On The 10-Year Yield
Bloomberg reporting:
Rosenberg, chief economist at Gluskin Sheff & Associates Inc., predicted yields on the 10-year note will drop to less than 2 percent. Faber, the publisher of the Gloom, Boom & Doom report, said he doesn’t believe they’ll fall to less than December 2008’s low of 2.08 percent. They have put booze on the line.
“If I lose the bet, I buy him a bottle of Cutty Sark, and if I win, I want a bottle of Dalwhinnie,” Rosenberg, 49, said during a radio interview today with Tom Keene on “Bloomberg Surveillance.”
Sign of the times? Notice a lot of use of the word ‘betting’ with regards the stock market recently. At least they are putting up their favorite Whiskey on the line…… and not clients money ;)
Teresa Lo 3:09 AM on May 8, 2010 Permalink | Log in to Reply
Well, there was some selling today in the Treasuries, so we’ll see what happens next week.
In the meantime, Williem Buiter gave a very informative talk at the CFR on the European situation (AUDIO).
It seems to me that the consensus view of all the big name economists is that Greece must reschedule its debt (much like they were calling to nationalize banks at the height of the banking crisis), but as I mentioned before, how this would go about happening is not known since any move to default would trigger the credit default swaps. At the moment, CDS is providing a perverse but profitable incentive.
wiinky 2:31 AM on May 9, 2010 Permalink | Log in to Reply
W.B., —- What a Guy !
Accordingly:
The BRICs party is good for a few more tunes.
Greece will default at a time that most suits them.
U.S.debt will become harder to sell.
Found stuff from his earlier blogs entertaining, especially “Gold’s 6000 year old bubble.”