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Morganfleeman

(117 posts)

14. Absurd

Reply to cthulu2016 (Reply #11)

Wed Dec 12, 2012, 06:04 PM

Dec 2012

A 100 basis point rise in 10 year rates (a very realistic scenario) wipes out 20% of the capital of a purchaser holding a 10 year treasury. If that's not bubble territory, I don't know know what is.

Interestingly, this is the first time QE has been announced and 10 year yields ROSE, which may lend credence (if it's the start of a pattern) to the idea that Fed policy is bordering on impotence.

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Highlight:

Federal Reserve to spend $45B a month to buy bonds, links rate hike to 6.5 pct. unemployment [View all] brooklynite Dec 2012 OP

Yay big banks! Roy Rolling Dec 2012 #1

I think that is the real reason for what they are doing. RC Dec 2012 #2

This is quite ignorant ^^^ cthulu2016 Dec 2012 #4

Has it been awhile since you read the terms of service? dixiegrrrrl Dec 2012 #8

Is there a preferred synonym for ignorant? cthulu2016 Dec 2012 #10

The next bubble ... Wernothelpless Dec 2012 #3

Thanks for spreading RW nonsense cthulu2016 Dec 2012 #5

Not because RW say it doesn't make it wrong Dokkie Dec 2012 #7

Absolutely. dixiegrrrrl Dec 2012 #9

I hope you wake up and see that your homespun economic 'common sense' is nonsensical cthulu2016 Dec 2012 #11

In a way yes Dokkie Dec 2012 #13

Absurd Morganfleeman Dec 2012 #14

Yes, that is what I am reading also. dixiegrrrrl Dec 2012 #16

This is REMARKABLE (and very good) news cthulu2016 Dec 2012 #6

Not Really Morganfleeman Dec 2012 #12

There are a number of negative consequences of the Bush/Obama weak $ policy MrTriumph Dec 2012 #15

Latest Discussions»Latest Breaking News»Federal Reserve to spend ...»Reply #14