Author Topic: UNLIMITED horrible bond bubble thread.  (Read 7360 times)

Hoopla!

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Re: UNLIMITED horrible bond bubble thread.
« Reply #45 on: August 21, 2019, 09:37:17 pm »
You mean the president lies??
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Doktor Howl

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Re: UNLIMITED horrible bond bubble thread.
« Reply #46 on: August 21, 2019, 10:38:11 pm »
I have wondered about Trump's job numbers. They always seemed too good to be true, given the disruption I am hearing on the industry side regarding the trade wars

It is also worth mentioning that the BLS still doesn't count people who have been out of work for more than 6 months.  In addition to this.
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Doktor Howl

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Re: UNLIMITED horrible bond bubble thread.
« Reply #47 on: August 23, 2019, 02:57:32 pm »
https://www.apnews.com/93bdaf6dc4ac489cb7c796845f5a13ec

It's almost as if this was predictable.   :lulz:
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Cain

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Re: UNLIMITED horrible bond bubble thread.
« Reply #48 on: August 23, 2019, 03:02:51 pm »
Quote
“Our tools for fighting recession are no doubt more limited (than) in the past,” said Karen Dynan, an economist at Harvard University’s Kennedy School.

Who could have forseen that denying governments funds via tax rises might lead to them not having enough money to counteract recessions?

Nobody could have known.

Doktor Howl

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Re: UNLIMITED horrible bond bubble thread.
« Reply #49 on: August 23, 2019, 03:19:33 pm »
Quote
“Our tools for fighting recession are no doubt more limited (than) in the past,” said Karen Dynan, an economist at Harvard University’s Kennedy School.

Who could have forseen that denying governments funds via tax rises might lead to them not having enough money to counteract recessions?

Nobody could have known.

This has never happened 3 times in my lifetime.   :lulz:
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chaotic neutral observer

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Re: UNLIMITED horrible bond bubble thread.
« Reply #50 on: September 22, 2019, 04:29:05 pm »
https://www.bloomberg.com/graphics/negative-yield-bonds/

There are currently $17 trillion worth of negative-yielding bonds out there.

As I understand it, a bond has negative yield when the current price of the bond is higher than the redemption value plus the remaining interest payments.  This means that if you hold the bond to maturity, you will actually lose money.

As absurd as this sounds, it's actually a good idea; if, for example, if bond prices increase indefinitely, or if you sell just before the price crashes, or if you are in a situation where it's safer to keep your money in bonds than in a zero-interest cash account.   :|
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Re: UNLIMITED horrible bond bubble thread.
« Reply #51 on: September 22, 2019, 04:35:46 pm »
Quick, tell me how I can take advantage of this for my own personal gain.

If you have a few million around, put it in Goldman Sachs preferred stock.  They're going to make out like bandits.

Does this recommendation still hold, and if so, why do you think so?  Not considering Impending Doom, GS looks like a decent stock at the moment.  They're evil, of course, but I wouldn't be much of a chaotic neutral if my principles weren't negotiable.

Is the likely outcome that a market meltdown will cause a storm of transactions, and GS will earn a few beans each time someone panics?
"When I say 'engineering', I have unreasonable expectations.  It must - as you know - look good in PADS AND give you plenty of help ducking and weaving in meetings.  But it must also, at some distant point in time, function.  If it does not, then you must accept that you are not in fact an engineer but instead an MBA.  Hang your head in SHAME, sinner!"