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17 years ago

Regarding the bond market
Regarding the bond market here is something else to consider;


U.S. Treasury officials are examining possible manipulation in the Treasury bond market, noting a sharp increase in trading volume over the last two years and the increasing temptation to profit from a squeeze.

It is an issue the Treasury first looked at in 2004, when short-term rates first began to bounce back. In Treasuries, prices move in the opposite direction as rates. In a squeeze, a dealer corners the market on a specific issue, forcing prices higher as demand builds and dramatically lowering the interest rate.

“Over the last two years, we have witnessed an increase in trading practices in the cash, repo and futures markets for U.S. Treasury securities that have raised questions for the U.S. Treasury and the regulatory agencies that monitor these markets,” said Deputy Assistant Secretary for Federal Finance James Clouse in a speech Wednesday at the Bond Market Association meeting in New York.

11 years ago

Not all money is used to
Not all money is used to consume this business’s products by paying his prices. In the real world this system depends on the ongoing creation of new loans, which means ever-increasing debt to the borrowers. I think there are psychological limits to the total amount of debt humans can tolerate. We get to this point then we pull back and everybody tries to suck money out of the system to payout their debts.
Richard from