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 : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (72805)	4/6/2011 2:00:54 AM
From: Maurice Winn	1 Recommendation Read Replies (1) \| Respond to of 217837

C2, I have been betting on higher interest rates for a long time. It's like Y2K when interest rates should have been falling but were not [I suspected Greenspan was trying to help Bush get elected, which was a good thing]. It's like 2003 when it was absurd that interest rates were not zooming. It took the Fed a year or more longer to increase them than I was thinking it should take. Then, they were slowish in cutting them again. Now, they have been slow in raising them. But go up they will as debts loom larger and fear grows more profound. Let's get on with it. My US$ need to get from 0% interest to at least Happy Meal level. It would be nice to see 10%. That should test a few debtors. Mqurice

To: carranza2 who wrote (72805)	4/6/2011 2:29:05 AM
From: Gemlaoshi	1 Recommendation Respond to of 217837

Excellent point! Buying assets on the leveraged end of interest rate derivatives is a black hole even for the FED. Paulson quickly realized that with TARP, and moved to the other end of the leverage by injecting capital directly into troubled banks. That was probably the smartest move that came out of an ugly situation. Toxic derivatives can quickly become more toxic. That's why Bernanke's arrogance and lack of real market experience make his moves so dangerous. The traders on WS will eat his lunch! Even the FED cannot afford to be the only buyer of the crap that WS will sell into QE. Dave