Fortunately Bernanke, unlike the bulls in the stock market, knows that a shutdown could destroy confidence and drastically cut back business. In that light, it is pretty amazing that more didn't see his nonmove coming. But, then again, the most overcrowded trade in the era was to be short the 10-year Treasury. When the biggest buyer of the 10-year said it still wanted to buy, there was no supply there at all. None.
That's because, in reality, there's no real demand for money up where the 10-year was a week ago, and there will be even less as we get closer to the shutdown. Bernanke knows that what matters is the future, not the past. But the bond bears? They were living in the past. And they were crushed for doing so.
At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, had no positions in the securities mentioned.
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