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This is one of the most poignant charts in my notebooks. The 60 year chart of long term US Treasury Yields.

An important factor in our "New Reality" investment outlook for 2009 is the thesis that the Queen Mary (see chart) is set up to turn up into the right. Long term US interest rates are unsustainably low, and preventing real US savings in this country to find a bottom. Give liquid investors the ability to earn a real return on their capital, and they will start lending it again - liquidity will follow.

Being prepared for an environment where access to capital continues to be tight as long term cost of capital begins to heighten is critical. The free money days of slapping leverage onto levered long bets are ending, abruptly.