Buy 30 year treasuries

then I will write the book 'maestro: the bernanke fed'

 

1) The 8% coupon got up to ~135 in October-1998.
2) The 6% coupon got up to ~125 in June-2003. Converting the 6% into an 8% would give a price atleast 20 handles higher.

 

fwiw, I'm about to barf at this move in the bonds, which means it's probably time to double my shorts...

 

Thanks man.

 

No offense, but this is a TERRIBLE investment...you are much better off buying a good MLP (master limited partnership) and get a solid dividend that has a great tax advantage...the 30 is just a bad idea.

 

Where do they (they=fed) get the cash to buy treasuries?

 

1. What if the master LL goes bankrupt.
2. I have read that they will tax them in canada (that is where they originated).
3. Do you know where to get a list of master LLs.
4. Thanks.

 

I didn't realize how many idiots were on ET until this thread.

 

Amen, brother. The dirty 30 has been strong as shit all week.

 

The fed will be monetizing the debt, instead of sterilization. The whole point of this process is to in fact, bring back some inflation. This is a deflation fighting policy.