T-Bond yields will be low for years, even if the Fed has to buy 99% of each auction?

Discussion in 'Economics' started by crgarcia, Jan 15, 2010.

  1. This "interest rates going higher" is nonsense, as the Fed has unlimited (printed) funds?
     
  2. Only until the world calls "BULLSHIT" on this ploy... then, we'll be firmly painted into a corner.
     
  3. The Chinese can smoke the fed out with one sale.
     
  4. S2007S

    S2007S


    Of course they have unlimited funds but keeping rates artificially low like they have for the last 18 months will have its consequences. Do you honestly think rates can stay this low forever, not possible.
     
  5. zdreg

    zdreg

    interest rates can say low alot longer than bond shorts can stay solvent.
     
  6. jem

    jem

    I can confirm that.
     
  7. it's gonna be 'stone soup' with nothing but stones in it
     
  8. zdreg

    zdreg

    so did Germany, Hungary and currently Zimbabwe. they have a ceremony in zimbabwe. it is called dollar burning.
     
  9. i heard a funny zombabwe joke the other day

    Q: what's the difference between a tourist and a racist?

    A: about a week
     
  10. sumfuka

    sumfuka

    You're right, there would be unintended consequences; but when? Kind of like Drunk Driving, one of these days the drunk will get into a major accident (possibly fatal), but the drunk might be able to keep driving drunk for a couple of decades.
     
    #10     Jan 15, 2010