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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: jimmg who wrote (76583)12/25/2006 5:50:03 PM
From: Real Man  Read Replies (2) of 110194
 
I'm a bear. I'm with you buying them calls, even though I have
a very different interpretation of what's transpiring in
the markets, and the economy, and am in agreement with Russ.
I interpret my stock
market calls as synthetic dollar shorts, given the all the
printing. I'll borrow to the hilt at fixed rates to buy as
many calls as I can - I think the Fed will bail me out.
It always does.
I'm going to borrow to the hilt to speculate at fixed rates.
The Fed is pushing real inflation higher than the rates.
It keeps the rates very low. So, the real cost of money is
negative compared to inflation. It only makes sense to
do what I'm doing, given Fed's actions. The other thing
I'm doing is borrowing at 0-2%, taking advantage
of some bank offers, and investing it in short-term treasuries
at 4.5%. That's free money, investing the profits in stock
market calls.
Thank you Ben! -g- I think what you're doing is right too!
But I disagree with you on interpretation.
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