Bonds

We've been collecting charts again and IMHO have done a slightly better job of adding links this time.

The first, a series of comparisons of California tax receipts, is the one you need to be worrying about ..... or not.

Make no mistake about it, California is Greece, only much, much, much, much ..... bigger.

The public is moving out of stocks as increasingly the stock market resembles a casino.

And are stampeding into bonds where ... IMHO once again ... they are about to get slaughtered ..... see that item on California tax receipts above.

Corn, Gold, Siver and Brent Crude are the best investments of the last five years.

Buy gold ... maybe farmland ..... just sayin.

Mystery solved.

We haven't quite wrapped our brains around this next one yet.

Both charts link to the methodology employed in their construction.

Among the reasons Goldman Sachs won't be facing criminal prosecution for their activities before, during and after the mortgage fiasco ..... or for anything else for that matter.

As an aside, they also own at least one former Democrat Senator and a former Governor of Massachusetts.

Two distinct points of view.

The Wiffer, upon hearing about the clamor for a more uplifting posting, heartily agreed and sarcastically suggested the following for the new JustThinking.us logo.

I thought that was a bit harsh, but it did get me thinking.

From Merriam-Webster, among the definitions for the noun bond are the following:

Bond - something that binds or restrains : Fetter

A binding agreement : Covenant

A band or cord used to tie something.

One who acts as bail or surety. 

An interest-bearing certificate of public or private indebtedness.

The etymology for the word bond is shared with that for the noun Bondage, a synonym for Slavery.

Mortgage - A temporary, conditional pledge of property to a creditor as security for performance of an obligation or repayment of a debt.

From Middle English - morgage, and from Old French : mort - dead,

from Vulgar Latin - mortus, from Latin - mortuus, past participle of mori - to die;

plus gage - pledge (of Germanic origin).

Word History: The great jurist Sir Edward Coke, who lived from 1552 to 1634, has explained why the term mortgage comes from the Old French words mort, "dead," and gage, "pledge."

It seemed to him that it had to do with the doubtfulness of whether or not the mortgagor will pay the debt.

If the mortgagor does not, then the land pledged to the mortgagee as security for the debt "is taken from him forever, and so dead to him upon condition.

And if he doth pay the money, then the pledge is dead as to the mortgagee.

Here's Richard Russell, publisher of the Dow Theory Letters, with yet another take on the Bond Market.

He offers this chart on the 30-Year Treasury Bond with the following comments,

"I've been keeping an eagle eye on the daily chart of the 30-year Treasury bond. As of yesterday, the "long bond" had sunk exactly to its support at around 114. If support breaks, interest rates will be heading dangerously higher. The chart shows a double top (first two red arrows). Then a break to the downside and a formation showing a triple top (second set of three red arrows). As of yesterday's close, the 30-year T-bond was sitting exactly on critical support. If bonds are down today, it won't be pretty.

Friday Alan Greenspan called higher Treasury rates "the canary in the mine" and forecast rising rates. Greenspan is almost always wrong, but this time I agree with the former "Maestro."

Might be just about time to get that 30 year fixed refi, if you're able.

Below is a "Head and Shoulders" pattern nearing completion on the Weekly T-Bond chart.

I referenced this pattern and posted one of my charts a week or so ago titled,

"A Heads Up from R.E. MacMaster"

The chart below links to his site, unfortunately, he's stingy with the free stuff, and it ain't cheap.

Recommended anyway.