Can somebody smart please read this & tell me..

[Mega]

...What it means?
http://ftalphaville.ft.com/blog/2009...e-gilt-market/

I sense "Trouble"!
Mike

[nero3]

Re: Can somebody smart please read this & tell me..

...What it means?
http://ftalphaville.ft.com/blog/2009...e-gilt-market/

I sense "Trouble"!
Mike

railroad shares are perfect if the bond market crash. When yields head up, in the US, it might not be back to the 4-4,5 % level, but to a level that reflect less or no buying from China (they used to cause yields to be at least 1 % lower than it otherwise would be according to federal reserve research), plus discounting all the money printed between October and now, who knows what that level could be.

[flintlock]

Re: Can somebody smart please read this & tell me..

railroad shares are perfect if the bond market crash. When yields head up, in the US, it might not be back to the 4-4,5 % level, but to a level that reflect less or no buying from China (they used to cause yields to be at least 1 % lower than it otherwise would be according to federal reserve research), plus discounting all the money printed between October and now, who knows what that level could be.

He said someone smart .

Sincerely,
Metalman




I keed, I keed.

[globaleconomicollaps]

Re: Can somebody smart please read this & tell me..

...What it means?
http://ftalphaville.ft.com/blog/2009...e-gilt-market/

I sense "Trouble"!
Mike

Mega, You are doing a terrific service to the community with your posts, but you could do us all a bigger favor if you would write a few words that would encourage people to click on the link. It doesn't have to be much, just a word or two, like:

This is an article that seems to be saying that something is fishy with the way government bonds are being bought by the bank of England.

or something like that. It kind of makes the place look "cheap" or uneducated if you just say "Hey, Check out this link!"

keep up the good work.
-Global

[art]

Re: Can somebody smart please read this & tell me..

Hear, hear! I pretty much skip all posts that don't even bother to provide a reason to click.

Come on - we're lazy and want someone else to do our work for us :-)

[*T*]

Re: Can somebody smart please read this & tell me..

...What it means?

BoE: We are a buyer of Treasury debt.

Market: Sold to you!

... and so longer term rates go up, not down as (presumably) they'd hoped.

[nero3]

Re: Can somebody smart please read this & tell me..

BoE: We are a buyer of Treasury debt.

Market: Sold to you!

... and so longer term rates go up, not down as (presumably) they'd hoped.

I think up is what they hoped. Like when Japan did it, it was to push up longer term rates, they buy to hope it turn up, after they are finished buying Then they hold down short term rates, giving an environment of negative real interest rates, exactly what they are wanting, later they will have to push the brakes to avoid runaway inflation. It's sort of an inverse version of 1981

[Diarmuid]

Re: Can somebody smart please read this & tell me..

I It's sort of an inverse version of 1981

Sort in the same way Aldous Huxleys' Brave New World is an inverse version of George Orwells' 1984?

[nero3]

Re: Can somebody smart please read this & tell me..

Sort in the same way Aldous Huxleys' Brave New World is an inverse version of George Orwells' 1984?

More like how you can vision todays bond market as the inverse of the 81 era. a Ben Bernanke as the inverse of Paul Volcker, and interest rates at all time low, vs all time high. It means a deflation of living standards, and a further distribution of wealth to emerging market's, kind of like after 1950.

What would be quite perverse, was if lending for some reason went into high drive, and we got some kind of 90-s, or 1920's like boom, on 0 % interest rates.

A thought I have looked at is some sort of 1920-s like boom taking place in China.