The shift out of bonds is being noticed even in Washington these days. This is perhaps the number one issue concerning questions we have received from political and institutional circles. The rise in the Euro was in part caused by the sell off of long-term bonds. The manipulation of buying in the long-term to help the mortgage crisis was plain STUPID. The national debts are increasingly more and more short-term and that introduces volatility like we have never seen in more than 50 years.
This is also why the Fed has been informing banks since June that they should re-calibrate their models for there may be no flight-to-quality as traditionally put forth. We are in a Private Wave where confidence in government always declines. Then the next generation will shift after the private sector goes into hyper-drive and abuse. Like good and evil, male and female, heaven and hell, democrat and republican, left and right; there must be two opposites in everything.