SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : Clown-Free Zone... sorry, no clowns allowed
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: reaper who wrote (225163)3/4/2003 10:19:57 AM
From: Perspective  Read Replies (2) of 436258
 
<I guess the operative word here is "jam">

Actually, if the deflationary scenario takes hold, even gradually falling long-term rates could effectively *raise* inflation-adjusted interest rates, if prices fall faster than interest rates. Right now, depending upon whom you ask, you might hear that real interest rates are negative. I believe that they are, from the perspective that I'm losing effective purchasing power by holding a treasury bond.

That's why I remain focused on holding short positions and gold - the former because this is the worst possible operating environment for corporate America (corporate equity is useless in a world awash in capacity), the latter because the smart money is figuring out what that nutcase Bernanke is talking about. I'm already having visions of what the run-for-cover to anti-paper will do to the prices of hard commodities.

BC
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News