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ucodegen
ParticipantWe have conservatives here who like to argue the government f—- everything it touches.
But when it comes to propping up housing prices? Surprise!! Government action works!!!
Who said that propping up housing prices is not f——- what it touches. I guess it could depend upon what side of the house transaction one is.
If you already bought at the peak, it may help rescue you from the bad decision that you made by ‘following the crowd’. This would be at the expense of a new buyer or the taxpayers in general.
If you are a new buyer, it will force you to rent or pay an inflated price for shelter. That inflated price may lock you into a location for years.
If you are a bank, it may rescue you from a bad loan that you made.. but at the expense to the taxpayers.
It all depends upon the ‘point of view’.
ParticipantWe have conservatives here who like to argue the government f—- everything it touches.
But when it comes to propping up housing prices? Surprise!! Government action works!!!
Who said that propping up housing prices is not f——- what it touches. I guess it could depend upon what side of the house transaction one is.
If you already bought at the peak, it may help rescue you from the bad decision that you made by ‘following the crowd’. This would be at the expense of a new buyer or the taxpayers in general.
If you are a new buyer, it will force you to rent or pay an inflated price for shelter. That inflated price may lock you into a location for years.
If you are a bank, it may rescue you from a bad loan that you made.. but at the expense to the taxpayers.
It all depends upon the ‘point of view’.
ParticipantYes, but the discounting will be exactly offset by the higher yield of the “new” 5-year compared with the “old” 10-year.
You are forgetting transaction costs. There is no point in the sale/purchase at the 5 year point if it ends up being a wash. All you are doing is feeding the broker. Second part of the problem is that if the interest rates are rising as the sale/purchase is being done, the discount will be affected by anticipations of further rate increases.
ParticipantYes, but the discounting will be exactly offset by the higher yield of the “new” 5-year compared with the “old” 10-year.
You are forgetting transaction costs. There is no point in the sale/purchase at the 5 year point if it ends up being a wash. All you are doing is feeding the broker. Second part of the problem is that if the interest rates are rising as the sale/purchase is being done, the discount will be affected by anticipations of further rate increases.
ParticipantYes, but the discounting will be exactly offset by the higher yield of the “new” 5-year compared with the “old” 10-year.
You are forgetting transaction costs. There is no point in the sale/purchase at the 5 year point if it ends up being a wash. All you are doing is feeding the broker. Second part of the problem is that if the interest rates are rising as the sale/purchase is being done, the discount will be affected by anticipations of further rate increases.
ParticipantYes, but the discounting will be exactly offset by the higher yield of the “new” 5-year compared with the “old” 10-year.
You are forgetting transaction costs. There is no point in the sale/purchase at the 5 year point if it ends up being a wash. All you are doing is feeding the broker. Second part of the problem is that if the interest rates are rising as the sale/purchase is being done, the discount will be affected by anticipations of further rate increases.
ParticipantYes, but the discounting will be exactly offset by the higher yield of the “new” 5-year compared with the “old” 10-year.
You are forgetting transaction costs. There is no point in the sale/purchase at the 5 year point if it ends up being a wash. All you are doing is feeding the broker. Second part of the problem is that if the interest rates are rising as the sale/purchase is being done, the discount will be affected by anticipations of further rate increases.
ParticipantJust so there is no misunderstanding – if you buy a $1000 10-year bond @ 3.5% and hold it to maturity, you will collect $350 in interest over 10 years and then you’ll get your $1000 back, and it does not matter in the slightest what happens to 10-year rates.
Furthermore, if you buy a 10-year bond now and then sell it 5 years from now, and invest the proceeds into a 5-year bond at whatever the interest rate is in 2015, by 2020 you will still have $1350, give or take a few dollars.
First paragraph is correct, but the second paragraph isnt. The selling price has to be ‘discounted’ by the difference between the bonds yield and current risk free rate of return.
ParticipantJust so there is no misunderstanding – if you buy a $1000 10-year bond @ 3.5% and hold it to maturity, you will collect $350 in interest over 10 years and then you’ll get your $1000 back, and it does not matter in the slightest what happens to 10-year rates.
Furthermore, if you buy a 10-year bond now and then sell it 5 years from now, and invest the proceeds into a 5-year bond at whatever the interest rate is in 2015, by 2020 you will still have $1350, give or take a few dollars.
First paragraph is correct, but the second paragraph isnt. The selling price has to be ‘discounted’ by the difference between the bonds yield and current risk free rate of return.
ParticipantJust so there is no misunderstanding – if you buy a $1000 10-year bond @ 3.5% and hold it to maturity, you will collect $350 in interest over 10 years and then you’ll get your $1000 back, and it does not matter in the slightest what happens to 10-year rates.
Furthermore, if you buy a 10-year bond now and then sell it 5 years from now, and invest the proceeds into a 5-year bond at whatever the interest rate is in 2015, by 2020 you will still have $1350, give or take a few dollars.
First paragraph is correct, but the second paragraph isnt. The selling price has to be ‘discounted’ by the difference between the bonds yield and current risk free rate of return.
ParticipantJust so there is no misunderstanding – if you buy a $1000 10-year bond @ 3.5% and hold it to maturity, you will collect $350 in interest over 10 years and then you’ll get your $1000 back, and it does not matter in the slightest what happens to 10-year rates.
Furthermore, if you buy a 10-year bond now and then sell it 5 years from now, and invest the proceeds into a 5-year bond at whatever the interest rate is in 2015, by 2020 you will still have $1350, give or take a few dollars.
First paragraph is correct, but the second paragraph isnt. The selling price has to be ‘discounted’ by the difference between the bonds yield and current risk free rate of return.
ParticipantJust so there is no misunderstanding – if you buy a $1000 10-year bond @ 3.5% and hold it to maturity, you will collect $350 in interest over 10 years and then you’ll get your $1000 back, and it does not matter in the slightest what happens to 10-year rates.
Furthermore, if you buy a 10-year bond now and then sell it 5 years from now, and invest the proceeds into a 5-year bond at whatever the interest rate is in 2015, by 2020 you will still have $1350, give or take a few dollars.
First paragraph is correct, but the second paragraph isnt. The selling price has to be ‘discounted’ by the difference between the bonds yield and current risk free rate of return.
ParticipantYea, but did you watch the second video? The analyst states the stock has the potential to fall to $28, based on the technical chart, especially if the fundamentals (earnings) don’t turn around quickly!
I tend to ignore analysts who have to get camera time. Answer this: Who is generally considered one of the best stock pickers out there? How many times has this person searched out ‘camera time’ or ‘face time’ in the media? Does this person publish their picks or try to have them concealed?
BTW, did you watch just the videos or did you look through the quarterly and annual reports?
ParticipantYea, but did you watch the second video? The analyst states the stock has the potential to fall to $28, based on the technical chart, especially if the fundamentals (earnings) don’t turn around quickly!
I tend to ignore analysts who have to get camera time. Answer this: Who is generally considered one of the best stock pickers out there? How many times has this person searched out ‘camera time’ or ‘face time’ in the media? Does this person publish their picks or try to have them concealed?
BTW, did you watch just the videos or did you look through the quarterly and annual reports?
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