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


To: TH who wrote (106539)12/3/2009 12:04:28 PM
From: ggersh  Respond to of 110194
 
TH

"They must have deflation chills to the bone and be sleeping while the madman prints 24/7."

I'm sorta in that camp also. I think over the past 10 years we've seen the inflation everyones talking about. IOW, we had
financial inflation in regards to mergers, PE, Hedge funds, WS and etc.

Now outside of BB's printing press working OT, we get selected inflation and some selected deflation, but who decides what. GS, thats who.

"To be clear, I just don't get it."

DITTO!



To: TH who wrote (106539)12/3/2009 12:49:10 PM
From: clochard  Respond to of 110194
 
The Japanese managed to keep their bond around 1%. Its easy to do if everyone is convinced the economy isn't going anywhere anytime soon.



To: TH who wrote (106539)12/3/2009 4:33:49 PM
From: Paxb2u  Read Replies (1) | Respond to of 110194
 
TH----From my point of view, the banks (friendly to the FED), are buying and waiting a small amount of time and then selling to the FED for a small profit. Its a shell game and a fairly large ponzi scheme---Peace



To: TH who wrote (106539)12/4/2009 3:03:56 PM
From: John Vosilla  Read Replies (2) | Respond to of 110194
 
' all while the ten floats below 3.5%. Someday we may discover the game includes a series of moves to hide that Ben is funneling printed money from the right pocket into the begging arms of Timmy's left pocketTo be clear, I just don't get it.'

Host of factors and I've thought about it a lot too...lol

continued back end monetezation
very weak domestic real economy
overcapacity in many industries
massive trade deficit
globalization and spread of capitalism
internet and technology revolution the past 20 years

Am I missing something else?



To: TH who wrote (106539)12/5/2009 5:24:44 AM
From: Skeeter Bug  Read Replies (1) | Respond to of 110194
 
>>To be clear, I just don't get it.<<

i think the bond market is betting that the derivative debt is so large, that ben literally can't print enough to cover the debts - at least over the next few years.

they might be right - i've heard the notional value of the derivatives is between $500 trillion and $1.4 quadrillion. you know it is leveraged to the hilt.