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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding

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elmatador
toccodolce
To: elmatador who wrote (13391)3/31/2025 9:17:07 AM
From: robert b furman2 Recommendations  Read Replies (1) of 13772
 
Good Morning El,

Last year I bought 5 US Notes and /or Bills in the secondary market. They yielded 5.4 to 5.6 percent.

Between the interest paid and the market discount the combined gains taxed at 40.8 % required quarterly estimates to be paid.

So keep in mind to the degree the ownership of the US Treasury debt is owned by US Citizens whose wind fall profits from US obligattions puts them into the highest income bracket with "Ordinary income, a whopping 41 % of that comes back on quarterly estimates.

Thattakes a huge bite out of the realized cost of that 880 billion everyone is agonizing over. My bet is 25% of that debt comes back either in quarterly estimates or a huge inflow for the government in about 2 weeks (April 15th).

They have all since been redeemed and the rates have dropped some 168 basis points.

Trump and Bessent are having it their way so far.

Bob
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