Get your Shorts in Players...The Yield Curve just flipped.

Investors by U.S. Debt at Zero Yield

By VIKAS BAJAJ and MICHAEL M. GRYNBAUM

Published: December 9, 2008

When was the last time you invested in something that you knew wouldn’t make money?

In the market equivalent of shoveling cash under the mattress, hordes of buyers were so eager on Tuesday to park money in the world’s safest investment, United States government debt, that they agreed to accept a zero percent rate of return.

The news sent a sobering signal: in these troubled economic times, when people have lost vast amounts on stocks, bonds and real estate, making an investment that offers security but no gain is tantamount to coming out ahead. This extremely cautious approach reflects concerns that a global recession could deepen next year, and continue to jeopardize all types of investments.

While this will lower the cost of borrowing for the United States government, economists worry that a widespread hunkering-down could have broader implications that could slow an economic recovery. If investors remain reluctant to put money into stocks and corporate bonds, that could choke off funds that businesses need to keep financing their day-to-day operations.




When you see something like this you have to short the market, especially after this sucker rally. I predicted DOW was going to 6K, and I stand by it. This market is going to tank.