Bond rally nearing an end?

Discussion in 'Financial Futures' started by gharghur2, Jan 18, 2006.

  1. Lance Carson

    Lance Carson Guest

    Brazil made the move to Ethonal early and by 1980,s it was in all gas stations in the city of Rio. The local hated it, but it was the right move by the Government.
     
    #1541     Jul 18, 2006
  2. Lance Carson

    Lance Carson Guest

    Lookout ! PIMCO is on CNBC
     
    #1542     Jul 18, 2006
  3. newbunch

    newbunch

    What did he say?
     
    #1543     Jul 18, 2006
  4. Lance Carson

    Lance Carson Guest

    lol,

    Bill Gross of PIMCO, largest Bond Fund under management.
     
    #1544     Jul 18, 2006
  5. I think that it is a done deal that we hit 8% 30 year mortgage rates by 18 months. We're already at 6.5%, so with some pain in the housing market, and a return of the risk premium (possibly along with fannie mae reform or other legislative influences to curb borrowing) this isn't too silly. Up to 9% for a while, and back down to 8% until things sort out.

    I think that the pattern of the rise is linked to short term rates where the short term rates lead, and the curve briefly inverts, then flattens. The fed will keep hiking until it gets what it needs.

    I keep maintaining that there are significant reasons why long bond yields need to be above 7% - pension issues, etc... It would solve a lot of problems on the PBGC's behalf, and our legislators.

    As far as hyperinflation? Not yet. I think its pretty unlikely. However, if it does happen and you haven't prepared for it, you're really screwed, aren't you? Particularly if you are a zero coupon holder.

    Remember that it took us 25 years to go from 14% to 5%. May take us 25 years to go back up too.
     
    #1545     Jul 18, 2006
  6. Lance Carson

    Lance Carson Guest

    I concur
     
    #1546     Jul 18, 2006
  7. taodr

    taodr

    I believe the Fed and or most central banks will not stop raising rates until gold is under $400. If they don't currency will be worth shit.
     
    #1547     Jul 18, 2006
  8. Lance Carson

    Lance Carson Guest

    There is some Shit worth more than Gold, LOL
     
    #1548     Jul 18, 2006
  9. if the Fed. was a real Fed., short rates would be near 10%....

    basically, the Fed is devaluing the dollar to force people to work longer to help pay for the Socialist Paradise for the boomers who are about to hang it up....

    hyperinflation is here hiding in plain sight.....a 1930 dollar is worth 6 cents today.....

    and it takes $5 in debt to produce $1 in GDP.....

    so Big Ben has to engineer inflation to propagate the fraud, since the cure for all of this is very distasteful
     
    #1549     Jul 18, 2006
  10. Lance Carson

    Lance Carson Guest

    You mean like real MACHO FED like Pancho Villa or a sissy Fed like Tootsi ?
     
    #1550     Jul 18, 2006