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


To: TH who wrote (256509)6/24/2010 3:54:13 PM
From: RetiredNowRespond to of 306849
 
The bond buyers are the group I can't understand. To my thinking if they get lower rates, it is confirming deflation. And the Bennie prescription for that is well known. Thus you are getting a shit rate with the absolute awareness that your currency is going to be debased. Trillions looking to park somewhere is the only explanation

You got it. Look at the alternative. Cash is not yielding anything. So if you want some yield at all, the next safest thing is US Treasuries. So that's where they go. So the only question is when will the failed Treasure auction happen? I have no idea, because we already know the Fed steps in to buy Treasuries with newly printed money if demand is soft. So this game could continue for another 10 years. Exactly where is the limit? I don't see any.