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Strategies & Market Trends : John Pitera's Market Laboratory

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To: MulhollandDrive who wrote (10409)10/24/2008 10:21:09 AM
From: Hawkmoon  Read Replies (1) of 33421
 
"There can be circumstances in a low-rate environment where it's cheaper to fail" than deliver, Mr. Toomey said. Such an environment also reduces incentives to act as a lender of securities, he said.

Holy crap!! Had no idea it was going on the Treasury markets (but should it surprise me?).

But who would want to be short in the Treasury markets unless they believed in a hyper-inflation scenario? They must be getting killed on those shorts..

Hawk
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