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There was a mini panic in the financial markets recently when the .  The 30 year bond’s yield is now over 4.5%.  This is due to the fact that the central bank has been trying to push long term rates down by announcing that it is buying an additional $1 trillion of U.S. agency debt.  It seems like bond buyers are no longer taking this manipulation of yields, and they are demanding the interest on their investments.  What does this mean for little guys like you and me?

First of all, I am glad that this is happening because I am just sick of all the efforts to push down mortgage rates  when there is no good reason to push it down.  Higher mortgage rates will encourage people to borrow less money, and push down housing prices.  That is not a bad thing on both counts. People will buy houses when it is affordable and reasonable.  Many people are buying right now because housing prices have come down dramatically, and not because of the historically low  mortgage rate. New homebuyers may not be able to lock down mortgages under 5% any longer, but the dip in prices to come may just make up the difference. The only negative is for those who are waiting to refinance, because those below 5% rates are now gone.

Higher yields on treasuries may also make those in charge of the  U.S. government think a little bit before they issue more debt. They need to know that they cannot make every bond buyer pay extremely low rates and this endless borrowing needs to be controlled. If the U.S. government spent and borrowed less, then our taxes may be lower.  However, these higher yields will just mean that Americans will be paying more in interest for years to come with their tax revenues.  This is unfortunate, but bond buyers are investors who should not have to accept rates that do not match the risk of the investment.  For what it is worth, I think right now the yield on 10 and 30 year treasuries is still fairly low so the U.S. is still getting a fairly good deal.

Some other effects I am hopeful about is that perhaps short term rates will follow on the upward trend and savings rates will go up accordingly.  The worst scenario is that inflation is going up AND savings yields are still abysmal, and in a way that is sort of happening now.  Inflation isn’t tremendous this year, but I am noticing some small increases in gas and food prices.  Additionally, wage growth is fairly small all over the board due to the recession.

Anyway, the that its holdings are safe by pledging that the U.S. will try to reduce its budget deficit and eliminate the market manipulations by the government.  I personally think that China’s worries are justified because actions speak louder than words.  If the U.S. is really trying to reduce its budget deficit then it shouldn’t pledge more and more borrowing and spending.   The fact that Geithner had to make such a trip to reassure Chinese leaders shows that the U.S. government is feeling insecure about its debt situation and that does not inspire confidence in the bond market. China really has no obligation to buy trillions of U.S. treasuries and China is free to invest its reserves however it wants.  If China’s reluctance to lend encourages the US to cut its borrowing and spending then it is a good thing for  United State citizens in the long run.

In conclusion, the stock markets are showing signs of recovery, so this will probably push bond yields higher since there will probably be less demand for bonds.   This is good news for everyone who has money in the stock market.  It is reasonable that bond yields are going up, and it is nice to see some market forces push back against the heavy hand of government intervention.

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Last week was a pretty exciting week for us.  On Thursday we saw our baby’s heartbeat, and on Friday we were robbed.  We did not find out that we were victims of a crime until Saturday, though.  Basically, some thieves went to the carports behind our condo complex on Friday night and smashed my husband’s car window and ripped out his mounted GPS unit.

Here is the really stupid part, the thief or thieves apparently were in such a hurry that they ripped out the adapter and broke the cord.  The GPS usually does not have a charge so the unit is basically useless without the adapter.  I bet they felt stupid after running to their getaway car and finding out they broke the adapter.  Then again, adapters aren’t very expensive so maybe they have a pile of spare parts.   It seems that they did not enter the car at all because nothing else was stolen.  My hubby had at least a dozen CDs in the car that are worth more than the GPS.

The GPS was a Christmas gift to us from my hubby’s parents and we do not really expect that we will get it back.  We reported the incident to the police and an officer swung by.  He said that unless we had a serial number of the unit then it is pretty much impossible to identify the unit was ours even if they seized it from the criminals.  This makes complete sense, but my husband threw away the box a long time ago so there is no way we can track it.  The most annoying thing about this incident is really the broken car window because it left glass all over the floor and inside the car.  It took my husband and I an hour just to clean the seats and the floor, and we both got cuts from the glass.  My husband said that if he saw the thieves at his car he would have just given them two hundred dollars cash not to break his window because it is a big inconvenience for us.

Now my husband’s car is in the shop waiting for an inspection and repair and he is borrowing my car to go to work.  We will probably have to pay an auto insurance deductible for the window repair even though it was a theft and we are not at fault.  It really makes me wonder how much money these thieves make from these used devices because the GPS unit that was stolen from us costs $80 new, and it is about 1.5 years old so I estimate it to be worth $15 to $40 dollars just from gadgetry depreciation.  Additionally, since the thieves ripped out the adpater they probably need to replace the adapter just to get a buyer.   I looked online and the adapter costs around $15 to $20, so if they do buy a new adapter the profit they would get is around $-5 to $20.  Is that really worth smashing our car window?  I guess I just don’t understand criminals.

Anyway, I’m thankful that my hubby’s car wasn’t stolen and other things weren’t stolen. On a completely unrelated note we found a hummingbird nest on the flower vines on our fence, and there is a super cute baby hummingbird in it.  That kind of made the weekend a little brighter.

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Before I begin, I will flat out admit that  is a pretty stupid film overall.  The premise of the movie was that imbeciles were procreating at a faster rate than highly educated people so after 500 years the whole earth was filled with idiots.  They created giant piles of trash and watered their crops with energy drinks.  It was a dumb movie, and my husband said he felt stupider after watching it.

The first time I got reminded of Idiocracy was when we watched in the theatre.  These two movies both had giant piles of trash and also a very similar ending. The main difference was that Wall-E’s protagonists were cute little robots.  After watching that movie my husband said, “Idiocracy ruined Wall-E for me”.

This week I remembered the story of Idiocracy again after reading about Nadya Suleman.  Nadya Suleman is the mother of the now famous octuplets.  Apparently she now has a total of 14 kids.  Three of her older six kids are disabled so she’s receiving food stamps and money for them, and she funded her invitro treatments with her disability payments.  She is unemployed and now Kaiser is demanding money from MediCal to pay for the care of her octuplets.

I totally believe that everyone should be able to have as many kids as they want, but people need to understand that kids are huge responsibilities financially, physically, and emotionally.  An understanding these of responsibilities is what prevents a lot of folks from having a lot of kids, and this was illustrated in the movie Idiocracy.

So what’s my point?  I actually do not believe that book smarts is totally hereditary so I think it is possible that parents that are considered to be “dumb” can have very successful children. Basically, I do not believe that the world in Idiocracy would actually become a reality.  However, I am pretty annoyed by people who are perpetually unemployed and have  kids just to milk the system and collect welfare checks or discounted housing.   If you intend to provide for the kids you have and find a way to do it then there is nothing wrong with having tons of kids.  In fact, I admire the Duggar family of Arkansas a lot for what they are doing with their brood of 18.

With that said, if Nadya Suleman gets a reality show I think I would puke, because that would be true idiocracy.

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Sometimes I just read something so amusing that I feel fortunate to have read it. Well, today my ex-coworker sent me a link to former hedge fund manager Andrew Lahde’s goodbye letter and it is one of these funny manifestos that made me laugh. Andrew Lahde managed Lahde Capital, which had a 870% return last year because he shorted subprime mortgages. Today he announced that he is quitting the business in a that I thought was the most sensible thing I have read in more than a month. Here are some takeaways.

generic viagra no prescription women – In Lahde’s words, these idiots were “low hanging fruit” that “were (often) truly not worthy of the education they received (or supposedly received) rose to the top of companies such as AIG, Bear Stearns and Lehman Brothers and all levels of our government. All of this behavior supporting the Aristocracy, only ended up making it easier for me to find people stupid enough to take the other side of my trades. God bless America.”

generic viagra no prescription women – I write about this often, and it is refreshing to see someone actually quitting the grind even though he has the potential to earn so much more money. Andrew says that he will “let others try to amass nine, ten or eleven figure net worths. Meanwhile, their lives suck.” He also says that legacy is pretty overrated because people will forget Steven Balmer and Larry Ellison eventually so “throw the Blackberry away and enjoy life.” He also mentioned that he will try to recover his health, which is more important than chasing new deals.

generic viagra no prescription women- I think after witnessing the string of bailouts that marginally benefit everyday folks, we could agree on the point that the government is pretty broken. Lahde wants to see a forum where smart people come together to make up a better government. He thinks of the forum as Linux going against Microsoft. I don’t see that as very likely, but it’s fun to fantasize.

generic viagra no prescription women- This is probably the longest section of the letter, and possibly the most amusing. He makes some good points about how hemp is a really useful plant that was outlawed by a government that allows advertising for alcohol and more addictive drugs for the sake of money. My ex-coworker said, “I can just picture this guy lighting up half way through”.

Anyway, have a good weekend everyone. Live a little away from your computers and Blackberries, and as my crazy Spanish teacher would say, “No fuma drogas!”.

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Today I read the story of Terry Childs, a bonafide of the City of San Francisco. Apparently he was disciplined for poor performance and so he took matters into his own hands and . Now San Francisco’s networks are in his control even though he has been arrested and the city has set a $5 million bail.

First of all, I find this whole story bizarre because since the perpetuator is in jail and the city has physical access to the machines then they are able to reset the passwords or reinstall the systems. Second, what the hell were they doing by giving this guy so much power over the network? It doesn’t even seem like he was the IT director from the report. Third, I find the city’s reaction to this mischief to be quite overblown. The network is still running, but other admins cannot access the system. This shows that perhaps the other admins ARE more incompetent than Childs. They could have resolved the matter in a more civil manner than arresting the guy. That probably just pissed off the guy more.

Anyway, this guy was paid $150k last year, and since he has pulled this stunt I doubt he will be getting any new job offers soon. I don’t know if he did this to spite his employer or to keep his job, but it is safe to say that he probably would be fired soon enough.

Instead of doing this, he could have just told his superiors the security flaws and problems he sees at work. If they don’t listen, then there are other jobs out there he could apply for. If I were really angry at an employer I would just pack up and leave. I have left jobs before where someone or something pissed me off, but I just don’t think it is worthwhile to plan some kind of revenge. Terry Childs may have embarrassed his employer, but he also embarrassed himself by being so unprofessional.

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