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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (44975)	11/8/2005 12:13:25 PM
From: GraceZ	Read Replies (1) \| Respond to of 110194

i bought 10yr real-denominated Brazilian bonds with 13% YTM. Brazil has around 19% cash rates with under 5% inflation I take back whatever I might have said in the past about you being risk averse. Thanks for the book rec, The Triumph of the Optimists. I think it might look good on the shelf across from my extensive collection of doom and gloom books, nice to have one or two on the other side of that see saw. One example to contrast your view on inflation might be to look at what happened in Israel in the 80s when they thought that the "cure" for the pain caused by inflation was to simply index all wages to it, so that no one was hurt by it. It resulted in hyperinflation primarily because there was little resistance to stop it. It is the pain that inflation causes which keeps it from running away. The pain is almost never evenly distributed. Inflation has to be beat down in the market every single day. The way this occurs is that when a price rises, some can't afford to pay it and demand is reduced. If I try to charge my customers more, someone else comes along who is willing to work for less. Or a few billion people willing to work for less. edit: Just noticed that the list price on that book is $132....pretty funny you reference it in a post about inflation.