Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (3439)	11/6/2001 12:55:34 PM
From: gpowell	Read Replies (1) \| Respond to of 24758

When are you going to write a book?

To: ahhaha who wrote (3439)	11/6/2001 4:43:03 PM
From: ahhaha	Read Replies (1) \| Respond to of 24758

From the CSCO thread: To:Mephisto who wrote (56200) From: Jacob Snyder Tuesday, Nov 6, 2001 1:57 PM View Replies (5) \| Respond to of 56233 3. by stopping 30Y Treasuries sales, the Treasury is cutting off supply of long-term bonds, which is driving LT interest rates down. This is an explicit move to force money out of cash, out of bonds, out of Safe Havens of all kinds. Where will that money go? If the Treasury no longer offers the 30 year T bond the effect on long term interest rates is unchanged. The availability of an indicator of long term interest rates doesn't determine the long term rate. That's like saying the availability of barometers determines whether storms are coming. What determines the long term rate is fear of future inflation undermining a lender's principal. There is always some kind of instrument that people will use as an indicator of fear, so it doesn't whether any Treasury securities are available to provide this function. There is no intent on the government's part to "force money out of cash", whatever that means. Notice the poster uses "cash" in a vague way. The purpose of this obfuscation is that the poster doesn't quite know what to say because the position taken isn't supportable, since there is no risk class connection between T bonds and "cash", whatever one may wish to mean by that term. In any event driving people out of T bonds has no implication for risk preference alternatives.