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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?


To: Perspective who wrote (207501)6/18/2009 11:40:16 PM
From: ChanceIsRead Replies (1) | Respond to of 306849
 
>>>inflation scare will soon wane, as we revisit the nemesis of deleveraging: deflation.<<<

I would not discount that very much. Not much at all.

But if we go that route, how much will you get hurt being in TBT? I think not so much. How much higher can the 20 bond go???

So I think that the upside is much, much greater than the downside - which isn't much at all.

Of course when rates are this low, the durations are very great - a unit change in rates here makes a big change in the bond price. So it can move against you. But that would be short term, and with this much volatility you can always hedge off selling some high priced options.



To: Perspective who wrote (207501)6/19/2009 1:05:17 AM
From: Skeeter BugRead Replies (1) | Respond to of 306849
 
BC, but if helicopter ben can't print money, where will the $3.5 trillion come from that we need for ongoing national operations come from?

we need $2 trillion for the budget deficit and we need $1.5 billion to roll over expiring debt.

the entire world doesn't save that much money.

how is helicopter ben going to pay the bills?

it isn't like they will cut expenses. to the contrary, they are continuing to explode expenses.

tax rates would need to go from 15% to 25%, 25% to 65% and 36% to 92% to pay as we go - and i don't see that happening.

i do agree that it will be interesting to see how this plays out... a bunch of poor people who can't afford to buy anything as their currency crashes and prices want to explode.

did anything similar go down in rome when it collapsed?