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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: yard_man who wrote (132143)10/31/2001 4:13:15 PM
From: patron_anejo_por_favor  Read Replies (1) of 436258
 
<<Plenty of substitutes for 30 yr bond out there already, no -- why should I care??>>

Agreed, and very few of them are stocks.

I think there are a couple of possible reasons they did it:

1)They know we're in a deflationary collapse, and they don't want to be sellers of bonds now when the prices are likely to be going up indefinitely.

2) They know hyperinflation is on the way, and they want to put the bond vigilantes out of business, thus making the inflationary signals harder to see and read (ie, no falling 30 year bond price for dumbazz bears like us to point to and say "See...SEE! We told ya so, buy more gold!") Paradoxically, it may help gold long term because there is no alternative left to play the inflationary surge, ie, no bond left to short.

3) It's a great way to get all the whining ma and pa retiree-types to assume yet more risk (even though it's totally unsuitable for them)...if everyone won't jump into the (risk) pool on their own, the powers that be will simply toss them in!<NG>
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