David P Goldman Nuclear Call on 2 Year Treasury notes if LIBOR hits 74 basis points

   Note:  May 24, 2010

   LIBOR = London interbank offered rate 

   According to Spengler if LIBOR hits the 2 year US Government bonds rate they are going to get hit badly.  Quoting Spengler:

• If LIBOR continues to creep up and reaches, say, 75 bps, it no longer will be economical for banks to own US 2-year notes. In that case the US Treasury market will be in trouble. That’s when you head for the bomb shelter.
  
• Short 2 year notes