Who are the idiots buying bonds for 1% interest?

Discussion in 'Economics' started by misterno, Aug 13, 2010.

  1. Oh, I understood the options nonsense - except for the parts where you made rather gross errors in trying to explain what you were doing.

    Stick around, though - this thread needs a money losing clown and you fit the bill.
     
    #201     Aug 27, 2010
  2. kids stop fighting.

    the thread is interesting. the bonds are weird. please keep the fruitful discussion going for the benefit of the naive like myself.

    Grandpa Shortie Out :cool:
     
    #202     Aug 27, 2010
  3. bone

    bone

    Oh, come now, there go the mean-spirited personal attacks again.

    Don't get bitter, get better.

    Your wish will come true if I do nothing to my position and the Dec Ten Year rallies past 133 or, between now and the Sept. futures expiry, alternately crashes through 115.

    Wow, those Twos are crazy movers!
     
    #203     Aug 27, 2010
  4. CQNC

    CQNC

    Not just Citibank, but EVERY bank in the world, to support the USD from total collapse and driving the world economy into...you know. It's a shell game. That's why the equity markets are dead. Until the USD stabilises to where the trade deficit with China and the yuan is at zero or an acceptable" level, interest rates must stay low or the entire house of cards collapses in on itself.

    There is no such thing as money any more. It's all just numbers in the computer now.

     
    #204     Aug 27, 2010
  5. Redneck

    Redneck

    Admittedly I have not read past the first two pages of this thread


    Why go to bonds – a redneck’s economics 101


    Bonds and the physicals (Gold / Silver) are the last bastions of hope

    People (or countries) move to Bonds;

    To finance more spending

    Because they believe that country’s currency is going to shit

    ie = For protection...

    US is buying bonds to monetize the debt – which evidently then they’re planning to turn around and prop up the market with the “money” raised… (please have a think on why I placed money in quotations)

    Other countries (China) are buying bonds because they think the dollar will turn worthless


    Bonds fail – the US fails….

    Here’s a couple of links

    http://en.wikipedia.org/wiki/Monetization


    http://en.wikipedia.org/wiki/Government_bond


    http://en.wikipedia.org/wiki/Foreign_exchange_reserves_of_the_People's_Republic_of_China



    I said it before – we need some significant manufacturing to pull us out, and obviously some spending cuts…


    Other than war – the only thing that’s pulled us out in the past is housing – which is now kaput

    There’s an old saying – “May you live in interesting times” – We are my friends… We are

    Happy Weekend
    RN
     
    #205     Aug 27, 2010
  6. Others may have picked your pockets, and you do not even seem to realize it. Talk about options expertise! Here is the hint. Instead of the call spreads, redo the same thing with puts-- you might be able to realize what you lost. If you do not realize it then they deserve what they picked from your pockets with your own hands. Bravo in the area of knowledge does not work.
     
    #206     Aug 27, 2010
  7. Do you think that his strategy is to insult others so that there are more posts, and therefore more potential exposure for his things? If so, he picked the wrong people this time, as the readers should be able to easily make their conclusion about what he knows and what he does not, assuming the former is not empty and the latter is not what his leads already know.
     
    #207     Aug 27, 2010
  8. Probably. And truth be told, it could be a very effective strategy. His obvious target market is new traders who don't know what a spread is. So even though all the ones that saw him fall flat on his face in this thread are poisoned, there will be a new crop next month. If he'd gotten lucky and the market moved his direction, his belligerence might have been mistaken for real expertise and he might have sold a course to someone.

    It seems like a sort of variant on the old scam of taking 1024 marks, and then mailing them stock predictions 1 a week for 10 weeks. Each mark gets a different series of bull and bear predictions so that at the end of the 10 weeks there's guaranteed to be over 50 marks where your predictions went 8-2 or better. Then you sell your snake oil just to them.

    The only difference is that in this case, the marks are spread out over time rather than targeted in parallel. But the concept is the same.
     
    #208     Aug 27, 2010
  9. bone

    bone

    TJ: If you have no clue that being net short Dec. 130 Calls is identical to the 'puts' you describe then you have no business posting about options.

    Little D: Speculating on Interest Rate flat price direction with Two Year Notes is akin to making a porno with a Two Inch Dick. I gained 0.82% on the settle and you gained 0.08%. That's an order of magnitude unless of course you're going to argue that one as well.
     
    #209     Aug 27, 2010
  10. Watching your public persona break down into an ever more childish loser - the real you - as this thread goes on and the market moves against you is very entertaining. By all means continue :D
     
    #210     Aug 27, 2010