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 : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (84623)	12/25/2008 1:43:00 PM
From: Elroy Jetson	Respond to of 94695

The conclusion in the report is obvious. Without a penalty for failure to deliver Treasuries, there is little incentive to deliver especially when interest rates are very low. Without a penalty, sellers can both sell a Treasury bond and also keep it in their inventory to appear more sound. I'm sure there's even those who would argue this an indication of a shortage of U.S. Treasury debt during the current flight to quality - just as there appears to be a shortage of U.S. Dollars. .