Rates and Markets: Forward Curve, Hamptons Sales, Money Market Funds, Yields, Early Warning, Soros on Gold, Dow on Gold, Hedge Fund Playa

great article on forward curves – Here’s how much rates are expected to rise – Scott Grannis – A question from a reader made me think that this chart might be of interest. It comes from Bloomberg, and is designed to show the market’s implied forecast of interest rates at different points in time. The current Treasury yield curve is the bottom red line, and as you move up the chart you have the expected curve 1, 2, and 5 years from now. – Calafia Beach Pundit

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Hamptons New York Home Sales Climb 59% as Deal Seekers Buy – By Oshrat Carmiel and Prashant Gopal – … Transactions climbed to 409 from 257 a year earlier, the biggest increase in seven years of recordkeeping, New York-based appraiser Miller Samuel Inc. and broker Prudential Douglas Elliman Real Estate said in a report today. Competition for properties pushed the median price up 4.9 percent to $917,900, the first year-over-year gain since the beginning of 2008 … – Bloomberg

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ominous? – Suspending Money Market Redemptions Is Now Legal; SEC Approves New Money Market Regulation In 4-1 Vote – Submitted by Tyler Durden – … This explains the negative rate on bills: at this point, should there be another meltdown, money market investors will not, repeat not, be able to withdraw their money purely on the whim of Mary Schapiro. … – Zero Hedge

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Unlikely U.S. Treasury Yields Will Rise Until Securitization Is Fixed – Andrew Butter – Seeking Alpha

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An early warning system for asset bubbles – By Charles Roxburgh and Susan Lund – As policymakers and business leaders gather in Davos this week, much of their conversation will no doubt focus on how to drive a global economic recovery. Yet they should spend just as much time and energy discussing how to prevent the next devastating financial crisis – specifically, how to spot and prick asset bubbles as they are inflating. – Financial Times – McKinsey Global Institute

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Davos 2010: George Soros warns gold is now the ‘ultimate bubble’ – Gold is now "the ultimate bubble", billionaire investor George Soros has declared, sparking fears that prices for the precious metal may soon suffer a tumble. – both text and video – Telegraph.co.uk

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Chart – Dow in ounces of gold – … This results in what is referred to as the Dow / gold ratio or the cost of the Dow in ounces of gold. For example, it currently takes 9.3 ounces of gold to “buy the Dow.” This is considerably less that the 44.8 ounces back in the year 1999. When priced in gold, the US stock market has been in a bear market for the entire 21st century. … – Chart of the Day

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