There is a passage that I find really cool in it. It's when the guy with the brown shirt speak about freemarket ( at the end). And he says ( from memory) that the only fact that the market move so much just from the words of the FED chairman means that we aren't in Free market, because one individual control the prices just by his word.
ok..but then why we did have crisis in 06-08, following by bailout of banking system? banks are the ones,who did collapse,not investors,who bought that shit. probably,because their loans,which are on their balance sheets(not investors) are not performing well.. and if everybody expects hyperinflation-why bonds yields are so low? it's a last thing you want to hold during high inflation. imo-something like stagflation is much more likely..no growth,no inflation,not much of business activity,high unemloyment..prices on the food and gas are up,everything else-flat or down..
Has been a bit of a mystery for at least a few years. Suspect it could be a government/fed manipulation in the face of common sense. ?? After all, the Fed IS buying Treasuries to keep rates down in spite of their money-pump.
but fed is aint' buying corporate bonds right? if gvt treasuries yields are been kept artificially low-then the spread between corp bonds and gvt treasuries should be very wide..it's not..in many cases yields on corp bonds are even lower than on gvt bonds. does this mean that investors are trust corporations more than us gvt and they not expecting any inflation any time soon? mortgage rates...15 years national average 3.7%. forget about hyper inflation..if you expecting any inflation..would you lend money to somebody at those rates for next 15 years? i'm lost..
Corporates yield less than Treasuries? I'm not generally interested in corporate bonds, but my sense is that they are priced to yield well above Treasuries. (10yr Treasuries @ 2.6%, 30-year @ 4%... Equivalent Corporates around 6% or more??)
like i said-i't not every where,but in many cases corp yields are lower than gvt. and spread on composite rates is extremely small- http://finance.yahoo.com/bonds/composite_bond_rates 10 year treasury-2.6, 10 year corp AAA-2.85
Thank God I got my ass to Texas 5 years ago. two 9s with boxes of ammo, AR 15, with three cases of Clips. Gun shows every other week. Of course these are for range shooting and I decided to adopt the Texas way of life with guns. Took concealed class, can carry my 9 without it being scene. Learned how to properly shoot both the 9 and AR 15 and becoming a better shot every time i hit the range. THIS IS TEXAS....if and when the shit hits the fan...TEXAS is the last state that will surrender, bowdown or IMHO ever really be effected. Plenty of Ranchers, Free Range Farmers, for food. The list goes on and on and on. Shit, Mexico will be a great trading partner for people living in Texas...if the shit goes down. Not worried one bit. But great documentary.