The rules are that the fed is not letting 1929 happen again. I have fielded more than 40 calls in past three days from clients worried if they shouldOriginally Posted by CroMagnon
1. Just withdraw their cash from the bank and keep it at home
2. Is their money safe (in cash) at major brokers like Schwab and Vanguard)
3. Should they buy T-bills (even though at one point yesterday they offerred a NEGATIVE yield)
4. Should they buy Swiss francs or euros because they are worried the US will lose its AAA rating
The market is someone yelling fire in a theatre right now. The Fed obviously knows more than we do and is using all stops to stop the insanity
Right now you can get 65% yield to maturity on 1/15/09 Morgan Stanley bonds
What does that tell you about what the bond market thinks about their survival chances?