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3+ years of wasted hope....For bears


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Bears have no chance fighting this endless rigged game,or you might want to fade this post.....

 

I'll fade it in a week and a half Hanky....until then...

 

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Bears have no chance fighting this endless rigged game,or you might want to fade this post.....

 

Bears will get their chance, it come unexpectedly, Yoyo market may still have 6-8 years left

 

 

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The Last Ponzi Game Standing

May 2, 2012By Lee AdlerLee Adler argues that the idea that US economic growth and European economic crisis proves that austerity is a bad thing is false. The US only looks good in comparison, because capital is flowing out of Europe to the last Ponzi game standing, the US Treasury market. The US Treasury magically and instantly converts foreign capital inflows into current spending creating the illusion that austerity is bad and profligacy and stealing from the future income of US taxpayers is good. Russ Winter chimes in on the flight of small investors out of US stocks, and away from the propaganda ofmainstream TV financial infomercialism.

 

This is a subscriber only podcast.

 

If you are not a subscriber, click here to access the most recent free podcast posted on Monday, April 23.

 

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Few weeks ago one of these fellows was on Nightly Business Report, pretty much winking and nodding and essentially implying that the "rates are going up, stay away from fixed income". And we have the Floating Rate Notes trial blimp being floated(no pun) at the Treasury-TBAC Tango Festival. The ZH hair-on-fire theme of the moment - rates are going to rise.

 

It appears Japan has had floating rate notes for while, look what good it did to the interest rates... :lol:, at least so far :unsure:

 

FRN's are more stable from a principal standpoint -- i.e. they have almost no duration assuming something like a quarterly reset

 

Thus, the mark to market risk is credit based only as opposed to carrying an interest rate component

 

The fact that the underlying stays very close to par -- regardless of maturity is interesting

 

I need to put on my Black Ops glasses and figure out what the criminals are trying to do

 

If they decided to issue perpetual FRN's, that would be very very interesting....especially if the Fed held them, as the mark to market risk that some folks yap about goes to zero

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FRN's are more stable from a principal standpoint -- i.e. they have almost no duration assuming something like a quarterly reset

 

Thus, the mark to market risk is credit based only as opposed to carrying an interest rate component

 

The fact that the underlying stays very close to par -- regardless of maturity is interesting

 

I need to put on my Black Ops glasses and figure out what the criminals are trying to do

 

If they decided to issue perpetual FRN's, that would be very very interesting....especially if the Fed held them, as the mark to market risk that some folks yap about goes to zero

 

Thanks for the response and will look forward to the description of any apparitions discovered with Black Ops glasses...

 

I see your point about maintaining 'par', but what if the Treasury uses 'hedonic' adjustments to decouple the Treasury rates from the rest of the interest rate universe?. Does this question even make sense? :blink:

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