Chinese are so stupid they are getting paid less than 4% for their billions they invested in US treasury
They could have spent that money in their country and it would return much much more
Really really stupid
PeakOil is You
WHY Are Long Term Interest Rates So Low?
Re: WHY Are Long Term Interest Rates So Low?
by misterno » Tue 18 Mar 2008, 16:54:28
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Re: WHY Are Long Term Interest Rates So Low?
by AWPrime » Tue 18 Mar 2008, 17:50:37
$this->bbcode_second_pass_quote('xarkz', '')$this->bbcode_second_pass_quote('AWPrime', 'S')tarvid, then I would go with Iceland.
im not so sure about that...
Just yesterday our currency(isk) fell 7%..one year gain out of the window for those bond investors
And its down 20% this year so investors have been loosing their potential gain and are heading out.
No one knows where the bottom is, but we´re already at record lows.
But in the past 1-2 years investors have bought billions in bonds and kept the currency in artifical heights.. now the sky is falling
Inflation is going up (6.8%) so the interest rates(13.75%) will not be lowered soon.
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Re: WHY Are Long Term Interest Rates So Low?
by BigTex » Tue 18 Mar 2008, 19:04:30
The bond market and stock market are not supposed to crash at the same time, but that's what is looks like we're lining up for.
Like rats jumping from one sinking ship to another, back and forth as they both sink.
I didn't realize how screwed up the long bond market was I've been so focused on seeing how screwed up the stock market is.
Gold and cash then, right?
Like rats jumping from one sinking ship to another, back and forth as they both sink.
I didn't realize how screwed up the long bond market was I've been so focused on seeing how screwed up the stock market is.
Gold and cash then, right?
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Re: WHY Are Long Term Interest Rates So Low?
by misterno » Wed 19 Mar 2008, 00:19:55
Chinese are so stupid they are getting paid less than 4% for their billions they invested in US treasury
They could have spent that money in their country and it would return much much more
Really really stupid
They could have spent that money in their country and it would return much much more
Really really stupid
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misterno - Tar Sands
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Re: WHY Are Long Term Interest Rates So Low?
by DantesPeak » Wed 19 Mar 2008, 00:42:08
$this->bbcode_second_pass_quote('misterno', 'C')hinese are so stupid they are getting paid less than 4% for their billions they invested in US treasury
They could have spent that money in their country and it would return much much more
Really really stupid
They could have spent that money in their country and it would return much much more
Really really stupid
After accumulating about $1 trillion in US dollar assets, the Chinese have decided they they could perserve their trade relationships best by keeping the dollar sonewhat stable vs. their currency.
The realize that they are losing $10s of billions of dollars, but feel it's their best alternative for now.
The US historically has made countries honor their debt obligations. I believe that the Chinese expect the US to honor its debt obligations - one way or another.
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Re: WHY Are Long Term Interest Rates So Low?
by Starvid » Wed 19 Mar 2008, 06:14:53
$this->bbcode_second_pass_quote('AWPrime', 'S')tarvid, then I would go with Iceland.
Iceland is a bit scary. They have had hugely expansive and leveraged banks which are more or less blowing up. And it's not like they can, you know, it a small country. 300 000 people. Can they stand a financial crisis? Do the state have what it takes? Will the currency weaken a lot?Worries me a bit. Anyway, I don't own bonds directly, only via bond funds.
$this->bbcode_second_pass_quote('BigTex', 'S')omeone is loaning Mexico money at 7.8%?
Wow.
Peak oil is not an energy crisis. It is a liquid fuel crisis.
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