I don’t know if you’re joking, but, yes, it would be reported on the front page of the WSJ and just about everywhere else. It wouldn’t just be “business” news. There are about 200 auctions per year. We’d know pretty fast if the Treasury was having trouble finding greater fools to keep funding this circus.

>>>Seems like if the banking system collapses these securities will be worthless.

HA. Fine. What would my gold be worth then? A lot.

People who have been predicting the end of the world have been wrong for thousands of years. Somehow, the horror show grinds on. Based on that, I’m willing to dabble around with a small portion of my capital in things like UDN.

It’s pretty clear that the Fed is more interested in selling out the dollar over time than letting the whole thing come crashing down all at once. They could have just let Freddie and Fannie fail, which would have resulted in soldiers on the streets, martial law, overt collapse, etc. But they didn’t. And, for whatever reason, the Asians and a few others continue to buy U.S. debt.

When the U.S. paper auctions fail, that will indicate that we’re into a very different—much more dire—phase.