Treasuries Should Be Yielding 10%....?

Discussion in 'Wall St. News' started by libertad, Jul 13, 2009.

  1. http://www.thedisciplinedinvestor.com/blog/2009/07/13/treasury-yields-should-be-at-10/



    Just for fun....

    Take out a bond calculator....

    Assume the normal rate for LT debt is 4%....

    Now examine the losses at a 10% yield....

    Now examine all assets priced with 4% debt....

    Now think Japan....and how it is stuck....

    And think about ....the incentive to save....particularly at less than 1% Japan rates....

    .......................................................................................

    One could suggest further "large" losses could be in store....as a real possibility....

    For any country that suppresses its real ....normal rates....