Implode-o-Meter News - Blogger Michael Snyder: 10-Year Treasury Yield Will Signal Next Financial Collapse

``"We are truly moving into unprecedented territory, because we have been in a bull market for U.S. Treasurys for the last 30 years," Snyder wrote. "Many investors don't even know that it is possible to lose money on U.S. Treasurys. They have been described as 'risk-free' investments, but that is far from the truth."''

He's right. If you are trading Treasuries, or more likely, invested in Treasury funds, they can depreciate like anything else. This doesn't apply if you buy and hold them for income, but that tried-and-true method was basically abandoned for the fast capital gains of transactional investing in Treasuries in the financialized 80s and 90s. Happily for Treasury investors over this period, the market simply kept going up (most likely in large part BECAUSE of the gradual influx of T-fund investors over that period... Ponzi-style). The corollary is: what happens when the 30-year bull market reverses, and Treasuries gradually go down for the long term?

Relevant:

Blogger Michael Snyder: 10-Year Treasury Yield Will Signal Next Financial Collapse