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March 1, 2009 at 9:35 PM in reply to: Off Topic: “Buffett says U.S. Treasury bubble one for the ages” #358191
bsrsharma
ParticipantHow do you see the bond market popping?
Net world savings are going to be less than net capital need by U.S. at some point due to increasing deficits. At that point, interest rates will raise till U.S. willingness to pay that interest rate goes away. Going by the historical record of the ’80s, this can be as high as 16% for 10 year notes.
March 1, 2009 at 9:35 PM in reply to: Off Topic: “Buffett says U.S. Treasury bubble one for the ages” #358492bsrsharma
ParticipantHow do you see the bond market popping?
Net world savings are going to be less than net capital need by U.S. at some point due to increasing deficits. At that point, interest rates will raise till U.S. willingness to pay that interest rate goes away. Going by the historical record of the ’80s, this can be as high as 16% for 10 year notes.
March 1, 2009 at 9:35 PM in reply to: Off Topic: “Buffett says U.S. Treasury bubble one for the ages” #358631bsrsharma
ParticipantHow do you see the bond market popping?
Net world savings are going to be less than net capital need by U.S. at some point due to increasing deficits. At that point, interest rates will raise till U.S. willingness to pay that interest rate goes away. Going by the historical record of the ’80s, this can be as high as 16% for 10 year notes.
March 1, 2009 at 9:35 PM in reply to: Off Topic: “Buffett says U.S. Treasury bubble one for the ages” #358668bsrsharma
ParticipantHow do you see the bond market popping?
Net world savings are going to be less than net capital need by U.S. at some point due to increasing deficits. At that point, interest rates will raise till U.S. willingness to pay that interest rate goes away. Going by the historical record of the ’80s, this can be as high as 16% for 10 year notes.
March 1, 2009 at 9:35 PM in reply to: Off Topic: “Buffett says U.S. Treasury bubble one for the ages” #358769bsrsharma
ParticipantHow do you see the bond market popping?
Net world savings are going to be less than net capital need by U.S. at some point due to increasing deficits. At that point, interest rates will raise till U.S. willingness to pay that interest rate goes away. Going by the historical record of the ’80s, this can be as high as 16% for 10 year notes.
bsrsharma
ParticipantA cashiers check is a banks own check. Hence, it is good as long as the bank is in existence. If FDIC takes over, my guess is that they will honor all cashiers checks written by the bank unless there is evidence of fraud (For example, if Madoff or Stanford were an FDIC insured bank, and they wrote cashiers check to all depositors on demand, my guess is that FDIC may not pay it)
bsrsharma
ParticipantA cashiers check is a banks own check. Hence, it is good as long as the bank is in existence. If FDIC takes over, my guess is that they will honor all cashiers checks written by the bank unless there is evidence of fraud (For example, if Madoff or Stanford were an FDIC insured bank, and they wrote cashiers check to all depositors on demand, my guess is that FDIC may not pay it)
bsrsharma
ParticipantA cashiers check is a banks own check. Hence, it is good as long as the bank is in existence. If FDIC takes over, my guess is that they will honor all cashiers checks written by the bank unless there is evidence of fraud (For example, if Madoff or Stanford were an FDIC insured bank, and they wrote cashiers check to all depositors on demand, my guess is that FDIC may not pay it)
bsrsharma
ParticipantA cashiers check is a banks own check. Hence, it is good as long as the bank is in existence. If FDIC takes over, my guess is that they will honor all cashiers checks written by the bank unless there is evidence of fraud (For example, if Madoff or Stanford were an FDIC insured bank, and they wrote cashiers check to all depositors on demand, my guess is that FDIC may not pay it)
bsrsharma
ParticipantA cashiers check is a banks own check. Hence, it is good as long as the bank is in existence. If FDIC takes over, my guess is that they will honor all cashiers checks written by the bank unless there is evidence of fraud (For example, if Madoff or Stanford were an FDIC insured bank, and they wrote cashiers check to all depositors on demand, my guess is that FDIC may not pay it)
January 30, 2009 at 11:08 PM in reply to: Old Forum topic deserves re-visit: bubble in treasuries #339152bsrsharma
ParticipantFED recently said they may buy all sorts of paper, including treasuries. If they buy a lot of treasuries, what do you gain by shorting? Fed will always outbid you and keep the prices high. You may be better off shorting USD (by buying Gold/Oil futures/Swiss Franc/Yen etc.,). I think there is opportunity in commodities futures as most currencies have nowhere but down to go, long term.
January 30, 2009 at 11:08 PM in reply to: Old Forum topic deserves re-visit: bubble in treasuries #339479bsrsharma
ParticipantFED recently said they may buy all sorts of paper, including treasuries. If they buy a lot of treasuries, what do you gain by shorting? Fed will always outbid you and keep the prices high. You may be better off shorting USD (by buying Gold/Oil futures/Swiss Franc/Yen etc.,). I think there is opportunity in commodities futures as most currencies have nowhere but down to go, long term.
January 30, 2009 at 11:08 PM in reply to: Old Forum topic deserves re-visit: bubble in treasuries #339573bsrsharma
ParticipantFED recently said they may buy all sorts of paper, including treasuries. If they buy a lot of treasuries, what do you gain by shorting? Fed will always outbid you and keep the prices high. You may be better off shorting USD (by buying Gold/Oil futures/Swiss Franc/Yen etc.,). I think there is opportunity in commodities futures as most currencies have nowhere but down to go, long term.
January 30, 2009 at 11:08 PM in reply to: Old Forum topic deserves re-visit: bubble in treasuries #339601bsrsharma
ParticipantFED recently said they may buy all sorts of paper, including treasuries. If they buy a lot of treasuries, what do you gain by shorting? Fed will always outbid you and keep the prices high. You may be better off shorting USD (by buying Gold/Oil futures/Swiss Franc/Yen etc.,). I think there is opportunity in commodities futures as most currencies have nowhere but down to go, long term.
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