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Old 12-15-2010, 01:53 PM
 
Location: Planet Eaarth
8,954 posts, read 20,601,351 times
Reputation: 7193

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"Selling government debt is a gigantic confidence game. For decades, investors all over the globe have gobbled up massive amounts of U.S. debt at incredibly low interest rates because they believed that it was a certainly that they would be paid back and be able to make a little bit of profit on top of it. Unfortunately, things have changed. Confidence is U.S. Treasuries is dying, and if confidence in U.S. government debt completely collapses at some point we could literally be looking at financial Armageddon"

And I wonder if this statement really is true......
"Unfortunately, Americans have become so dumbed-down that they don't even realize that their leaders are incompetent. In fact, as sad as it is to say, most Americans you will meet on the street probably cannot even tell you what U.S. Treasuries are."

10 Signs That Confidence In U.S. Treasuries Is Dying And That Financial Armageddon May Be Approaching
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Old 12-15-2010, 02:27 PM
 
105,686 posts, read 107,663,235 times
Reputation: 79318
Oh please!
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Old 12-15-2010, 02:29 PM
 
Location: Sinking in the Great Salt Lake
13,139 posts, read 22,708,718 times
Reputation: 14115
Well, as is repeted ad nauseum here, even a broken clock is right twice a day. Take it with a grain of salt but ingnore it completely at your peril.
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Old 12-15-2010, 02:37 PM
 
Location: Tower of Heaven
4,023 posts, read 7,339,886 times
Reputation: 1450
Tightwad, stop this big crap please !
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Old 12-15-2010, 03:15 PM
 
105,686 posts, read 107,663,235 times
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central banks around the world have shifted to owning US tips instead of cash and bonds...they have been buying up huge amounts of tips


there is still amazing demand for us debt.
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Old 12-15-2010, 04:01 PM
 
Location: Texas
2,847 posts, read 2,480,231 times
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Quote:
Originally Posted by mathjak107 View Post
central banks around the world have shifted to owning US tips instead of cash and bonds...they have been buying up huge amounts of tips


there is still amazing demand for us debt.
correct, and there is the fact that the Chinese have recently increased their Treasury purchases.
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Old 12-15-2010, 05:17 PM
 
105,686 posts, read 107,663,235 times
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dont confuse the fact that investors want a little more inflation adjustment built into the interest rates with the fact no ones buying them.

one thing you should underdstand , markets always have to have a buyer and seller for each transaction or the transaction cant take place and the price cant be effected. what they bid and ask are something else but you cant have a registered sale without a buyer and seller .
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Old 12-15-2010, 07:18 PM
 
13,811 posts, read 27,302,854 times
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Quote:
Originally Posted by mathjak107 View Post
dont confuse the fact that investors want a little more inflation adjustment built into the interest rates with the fact no ones buying them.

one thing you should underdstand , markets always have to have a buyer and seller for each transaction or the transaction cant take place and the price cant be effected. what they bid and ask are something else but you cant have a registered sale without a buyer and seller .
Yes but the Fed is buying our treasuries, printing "money"
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Old 12-15-2010, 09:21 PM
 
3,753 posts, read 5,268,497 times
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Actually, I think that tightwad has too much time on his (her?) hands.
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Old 12-15-2010, 09:39 PM
 
Location: Boca Raton, FL
6,869 posts, read 11,178,001 times
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Smile The 10 year bond

I'm a mortgage broker and one of the things we look at is the 10 year bond. QE II started, I think, November 12th and the market was actually supposed to cleanse itself - we expected some volatility but what we are seeing is crazy - I mean, it's not like there is a ton of good news out there all of a sudden?

Is this a Santa Claus rally? Traders like the volatility - they can make some money.

When there is bad news, there was always a flight to safety (bonds). Mortgage rates would improve. Now, we're going the other way which will create problems with housing (not that there aren't any!)

The last thing we need is all this volatility.

My personal opinion - we were doing OK before the QE II - we had the housing stimulus (which went away June 30th but had to be in contract by April 30th) - then the incentive of lower rates helped some make that decision - now, with higher rates and no incentives, it's going to be tough.

Most people I know that were in the process of refinancing or purchasing are now waiting.
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