the us really ought to nationalize some banks, eh
srs oblique strategies
<3
/me is hoarding gold.
got enough guns to defend your stack?
Enough to defend my stack and take over someone else's.
i've been researching the gold market lately. i should have invested my entire line of credit into gold in november. i could have made thousands over a six month period.
im not down with investing in commodities
a one ounce bar of four-nine gold is like the wussiest-looking thing ever. it's tiny, but yet it's worth $1,000usd?
nestor: me neither. but everything that isn't insured is too risky for my preferences right now.
invest in baseball cards!!!!
hahaha
lr: not a fan of efficient markets? :(
i am. why do you ask?
Yeah, love the abject lack of intelligence in our government concerning this "crisis". Fucking absurd.
http://www.rollingstone.com/politics/story/26 … over/print Best article I've seen.
lr: buy an index.
i have less than a six month horizon, so i think it's better to stick with cash.
ah, intense
http://www.anewwayforward.org/demonstrations/
destroy my future please :)
destroy my future please :)
i think it's more delicate than that, so long as society permits financial engineering to occur.
LFIs are scary.
LFIs are scary.
well, yeah, the issue is complex. large firms can have benefits due solely to size. extremely large firms entering and exiting the market can really impact a country's economy. i just mean that any good policy will recognize that economies of scale exist and will weigh that benefit against the respective costs.
if so, then that was wuss
time to borrow some money and buy some awesome things
'lever up'
"so each citizen's share of this debt is $36,866.02" http://www.brillig.com/debt_clock/
I think i might manage that with a lot of work, but I am not sure about my niece and nephew.
I think i might manage that with a lot of work, but I am not sure about my niece and nephew.
luckily you, your niece, and your nephew can just make the next generation pay for it and some interest
ha ha, luckily the world still has faith in the earning power of the us govt.. not like the uk (got downgraded by one of the rating agencies today)
developed nations can get their ratings downgraded? i assume it is a relative scale?
well, to clarify, it wasn't exactly a rating downgrade - s&p just changed their 'watch' from stable to negative. which is like the light version of a downgrade and the market treats it just like a downgrade (it will trade like an aa issuer if you comped it).
i suspect it did even before the explicit downgrade. rating agencies are notoriously incorrect (e.g. on rmbs, iceland, etc.), and fixed income traders are very in-tune with the movements in the market. that's where the information is.
is default even possible for the us and the uk, the largest sovereign issuers? will they have any issue with paying it if they can print money? i'm not 100% on the macro side. fill me in chaps
i suspect it did even before the explicit downgrade. rating agencies are notoriously incorrect (e.g. on rmbs, iceland, etc.), and fixed income traders are very in-tune with the movements in the market. that's where the information is.
is default even possible for the us and the uk, the largest sovereign issuers? will they have any issue with paying it if they can print money? i'm not 100% on the macro side. fill me in chaps
they can print money. then in order to put the money in circulation, they have to buy back their bonds. this lowers the number of bonds in the market, and it lowers the market interest rate for the bonds.
i believe (i'm not sure) the consequences are these:
* lower interest rate
* inflation
i believe (i'm not sure) the consequences are these:
* lower interest rate
* inflation
shrug, sounds about right to me. i slept through macro.
i think default is possible. if hyperinflation is on the table, print enough money and all your debtors, abroad and domestic (as well all debtors and holders using your currency) loose everything. or governments (US,UK) could just refuse to honor bonds. what are bond holders going to do? stop buying bonds? by then it would be too late.
i think default is possible. if hyperinflation is on the table, print enough money and all your debtors, abroad and domestic (as well all debtors and holders using your currency) loose everything. or governments (US,UK) could just refuse to honor bonds. what are bond holders going to do? stop buying bonds? by then it would be too late.
> if hyperinflation is on the table, print enough money and all your debtors, abroad and domestic (as well all debtors and holders using your currency) loose everything.
what do you mean that they lose everything?
--
i think that as a country starts to print money to buy back its bonds abroad, its currency inflates, so foreign bondholders lose part of their investment relative to their local currency due to the inflation. as a result, foreign demand for the bonds drops, making the bonds cheaper for the country to buy back.
but if the country is printing so much money to cause inflation or hyperinflation (depending on the size of the debt), its citizens are harmed (possibly significantly).
so i think that a country can always buy back or pay off its bonds, as long as the country has fiat power. but the investors will be pissed when the face value of the bond buys few goods. and the citizens will be pissed when inflation is substantial.
just a guess.
what do you mean that they lose everything?
--
i think that as a country starts to print money to buy back its bonds abroad, its currency inflates, so foreign bondholders lose part of their investment relative to their local currency due to the inflation. as a result, foreign demand for the bonds drops, making the bonds cheaper for the country to buy back.
but if the country is printing so much money to cause inflation or hyperinflation (depending on the size of the debt), its citizens are harmed (possibly significantly).
so i think that a country can always buy back or pay off its bonds, as long as the country has fiat power. but the investors will be pissed when the face value of the bond buys few goods. and the citizens will be pissed when inflation is substantial.
just a guess.
makes sense, i have some more thoughts on this.. anon
i'm beginning to think the usd is going to get wrecked
make a new currency, I believe it could help.
going to get wrecked?
seriously? it's not wrecked already? I am deeply concerned about what your idea of wrecked may mean for us.
seriously? it's not wrecked already? I am deeply concerned about what your idea of wrecked may mean for us.
yes, you should be.
http://omploader.org/vMXNhNg
it doesn't look too bad right now when viewed from a long historical perspective. mind you, eurusd and cadusd are a bit more dramatic as the two have held their value, but both are off their highs from a while ago.
it doesn't look too bad right now when viewed from a long historical perspective. mind you, eurusd and cadusd are a bit more dramatic as the two have held their value, but both are off their highs from a while ago.
canadian madoff: http://en.wikipedia.org/wiki/Bertram_Earl_Jones
"The day is January 1, 2011. Breakfast. The government smells the imminent roll risk coffee and decides to convert all existing marketable government debt into perpetual bonds (pick your interest rate). At what yield would you be willing to buy some of Uncle Sam's latest offering?"