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.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: stan_hughes who wrote (182645)	7/23/2002 5:37:45 PM
From: reaper	Read Replies (1) \| Respond to of 436258

<<otherwise you're exposed when the rates zoom>> yeah, i do have some exposure to rates on the equity line (although i am long on record as thinking the 10-year will print a 3.xxxx before June '03 and 2.xxx before its done) and on one of the cards. but i have most of that money in very short-term debt instruments, so the rates on those will move up as well. my guess is the worst my spread could get is about 200 bps after tax, which would suck but frankly in the kind of world that would create that kind of exposure i'd pay that for access to this much liquidity. <<I wouldn't put too much faith in those shylocks to keep their end of the deal >> agree entirely. which is why all the money is invested in liquid obligations of the US government, so if they call my debt i can just sell and pay it back. the problem of course will come in once i invest the money in some non-liquid asset, like lakefront property in NH for 25 cents on the dollar versus where its trading today. my guess is that if they haven't called me by then, they won't. not to mention the fact that shorting my local bank and the dumb-ass credit card companies that gave me the money i've made enough to pay my spread for the next 5 years. Cheers