Off Topic: “Buffett says U.S. Treasury bubble one for the ages”

[fuggy]

How will this bubble popping, that is, interest rates skyrocketing, affect us?
(Other than it being a bad investment for those who bought 30 year bonds.)

[stansd]

I rarely speculate in the markets, but am short treasuries right now. Got them when the yield was 2.56%, which was nice. Am kicking myself for not shorting more at that point. Keep thinking the gov’t could start buying as a last ditch effort to keep rates down. If that happens, time to double down.

Big thought I keep having, though…if/when the treasury bubble bursts, does it matter. At that point, is the counterparty risk too high on the short side (fund I am using uses derivatives), and is there anything that is safe…lots of game theory going on in my head.

Stan

[stansd]

I rarely speculate in the markets, but am short treasuries right now. Got them when the yield was 2.56%, which was nice. Am kicking myself for not shorting more at that point. Keep thinking the gov’t could start buying as a last ditch effort to keep rates down. If that happens, time to double down.

Big thought I keep having, though…if/when the treasury bubble bursts, does it matter. At that point, is the counterparty risk too high on the short side (fund I am using uses derivatives), and is there anything that is safe…lots of game theory going on in my head.

Stan

[stansd]

I rarely speculate in the markets, but am short treasuries right now. Got them when the yield was 2.56%, which was nice. Am kicking myself for not shorting more at that point. Keep thinking the gov’t could start buying as a last ditch effort to keep rates down. If that happens, time to double down.

Big thought I keep having, though…if/when the treasury bubble bursts, does it matter. At that point, is the counterparty risk too high on the short side (fund I am using uses derivatives), and is there anything that is safe…lots of game theory going on in my head.

Stan

[stansd]

I rarely speculate in the markets, but am short treasuries right now. Got them when the yield was 2.56%, which was nice. Am kicking myself for not shorting more at that point. Keep thinking the gov’t could start buying as a last ditch effort to keep rates down. If that happens, time to double down.

Big thought I keep having, though…if/when the treasury bubble bursts, does it matter. At that point, is the counterparty risk too high on the short side (fund I am using uses derivatives), and is there anything that is safe…lots of game theory going on in my head.

Stan

[stansd]

I rarely speculate in the markets, but am short treasuries right now. Got them when the yield was 2.56%, which was nice. Am kicking myself for not shorting more at that point. Keep thinking the gov’t could start buying as a last ditch effort to keep rates down. If that happens, time to double down.

Big thought I keep having, though…if/when the treasury bubble bursts, does it matter. At that point, is the counterparty risk too high on the short side (fund I am using uses derivatives), and is there anything that is safe…lots of game theory going on in my head.

Stan

[jficquette]

[quote=SD Realtor]I tend to agree that it is a matter of when and not if. However I have been saying that for like 5 years now so I have given up on trying to predict the popping of treasuries. Still though, it seems like it has to happen doesn’t it? [/quote]

I suspect the “missing” $2 Trillion that the Fed refuses to quantify has gone into the stock market and bond market to prop it up.

I don’t see any way out of it either. Fed has about shot all all their bullets and don’t have the resources to keep buying up the long end of the curve.

John

[jficquette]

[quote=SD Realtor]I tend to agree that it is a matter of when and not if. However I have been saying that for like 5 years now so I have given up on trying to predict the popping of treasuries. Still though, it seems like it has to happen doesn’t it? [/quote]

I suspect the “missing” $2 Trillion that the Fed refuses to quantify has gone into the stock market and bond market to prop it up.

I don’t see any way out of it either. Fed has about shot all all their bullets and don’t have the resources to keep buying up the long end of the curve.

John

[jficquette]

[quote=SD Realtor]I tend to agree that it is a matter of when and not if. However I have been saying that for like 5 years now so I have given up on trying to predict the popping of treasuries. Still though, it seems like it has to happen doesn’t it? [/quote]

I suspect the “missing” $2 Trillion that the Fed refuses to quantify has gone into the stock market and bond market to prop it up.

I don’t see any way out of it either. Fed has about shot all all their bullets and don’t have the resources to keep buying up the long end of the curve.

John

[jficquette]

[quote=SD Realtor]I tend to agree that it is a matter of when and not if. However I have been saying that for like 5 years now so I have given up on trying to predict the popping of treasuries. Still though, it seems like it has to happen doesn’t it? [/quote]

I suspect the “missing” $2 Trillion that the Fed refuses to quantify has gone into the stock market and bond market to prop it up.

I don’t see any way out of it either. Fed has about shot all all their bullets and don’t have the resources to keep buying up the long end of the curve.

John

[jficquette]

[quote=SD Realtor]I tend to agree that it is a matter of when and not if. However I have been saying that for like 5 years now so I have given up on trying to predict the popping of treasuries. Still though, it seems like it has to happen doesn’t it? [/quote]

I suspect the “missing” $2 Trillion that the Fed refuses to quantify has gone into the stock market and bond market to prop it up.

I don’t see any way out of it either. Fed has about shot all all their bullets and don’t have the resources to keep buying up the long end of the curve.

John

[urbanrealtor]

to SD and John,
How do you see the bond market popping?

This is not a rhetorical question.

I am curious.

[urbanrealtor]

to SD and John,
How do you see the bond market popping?

This is not a rhetorical question.

I am curious.

[urbanrealtor]

to SD and John,
How do you see the bond market popping?

This is not a rhetorical question.

I am curious.

[urbanrealtor]

to SD and John,
How do you see the bond market popping?

This is not a rhetorical question.

I am curious.

[Author]

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