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“why is okay to borrow money from yourself? Isn’t that what’s going on with the Fed buying Treasuries?”
QE is effectively printing money to buy back some of your own debts, rather than borrowing from yourself. It reduces the real value of the debt by reducing the value of the currency. It keeps debt prices high / yields low by unbalancing the market in favor of buyers (do you want to bet against the govt continuing to buy when they have theoretically unlimited buying power).
It will come unstuck if and when it gets more difficult for the govt to roll over the debt, but right now it’s a sneaky way of increasing debt while keeping interest rates low in the near term.
Govt borrowing money from itself = ‘Social Security Trust Fund’
People who follow BHP closely expect them to go after an energy company now that the POT deal is finished (way to go Canada….there was one right answer to this and you got it wrong).
well my interview just got cancelled which I am happy about b/c who likes to arrive to an interview a wet mess from the rain -but now it’s been tentatively scheduled for Tuesday and I don’t have a time yet – that always makes me nervous!!!
I know that the standard advice is to put some of your portfolio into international markets, both developed and emerging. After following this advice for several years, I decided to take my money out of all international mutual funds and put them into big US-based multi-nationals like IBM, Pepsi, etc. My rationale is as follows:
-in my experience, most mutual funds do not hedge for currency risk, whereas muti-national companies do. I know my limits as an investor: I can analyze companies’ performance, but I do not have enough financial knowledge to trade on currency risk. Besides, it seems to me to be an inherent contradiction. If I have money in an international value fund, for instnace, what sense does it make to have an overlay of currency risk, which is purely trading,not investing.
-I have come not to accept the basic premise of international mutual funds. I used to invest in a non-Japan Euro-Pac fund. It seems absurd to me to believe that a small team of analysts can really spot exceptional opportunities over such a wide net. A prospectus of an international mutual fund usually goes something along these lines: “Gee, don’t we have a great life as an analyst as we trot the globe looking for opportunities!”. A pure sales job, with little transparency.
-It seems to me that a company like IBM, with a huge global footprint, will do a much better job spotting opportunities in the overseas market than a small team of analysts.
Dibs – ummmm are you forgetting? I worked for a record label for the past 12 years, my company used Fidelity for the 401K’s so I will give Fidelity a call to switch it over asap!
“You didn’t even get the DOW8000SP800 call correct.”
No, I got the call correct. Just not the timing and nor was I trying to (not a gambler). Peep the archives. And you ridiculed me up until it broke through 8000/800.
“Nor did you profit from it on the way down or the incredibly swift move back up.”
Nice shift from whether my prediction would come to pass to “but but but…you didn’t gamble any money, get the timing exactly right and luck out and win”. Wasn’t my objective, DIBS. I’m simply waiting for the REAL in real estate to return. Intrinsic value absent fraudulent, no-body-turned-down underwriting.
“why is okay to borrow money from yourself? Isn’t that what’s going on with the Fed buying Treasuries?”
QE is effectively printing money to buy back some of your own debts, rather than borrowing from yourself. It reduces the real value of the debt by reducing the value of the currency. It keeps debt prices high / yields low by unbalancing the market in favor of buyers (do you want to bet against the govt continuing to buy when they have theoretically unlimited buying power).
It will come unstuck if and when it gets more difficult for the govt to roll over the debt, but right now it’s a sneaky way of increasing debt while keeping interest rates low in the near term.
Govt borrowing money from itself = ‘Social Security Trust Fund’
People who follow BHP closely expect them to go after an energy company now that the POT deal is finished (way to go Canada….there was one right answer to this and you got it wrong).
WOPEY
HES
APC
APA
TUWLF
UGH & YEAH!
well my interview just got cancelled which I am happy about b/c who likes to arrive to an interview a wet mess from the rain -but now it’s been tentatively scheduled for Tuesday and I don’t have a time yet – that always makes me nervous!!!
DIBS and all;
I know that the standard advice is to put some of your portfolio into international markets, both developed and emerging. After following this advice for several years, I decided to take my money out of all international mutual funds and put them into big US-based multi-nationals like IBM, Pepsi, etc. My rationale is as follows:
-in my experience, most mutual funds do not hedge for currency risk, whereas muti-national companies do. I know my limits as an investor: I can analyze companies’ performance, but I do not have enough financial knowledge to trade on currency risk. Besides, it seems to me to be an inherent contradiction. If I have money in an international value fund, for instnace, what sense does it make to have an overlay of currency risk, which is purely trading,not investing.
-I have come not to accept the basic premise of international mutual funds. I used to invest in a non-Japan Euro-Pac fund. It seems absurd to me to believe that a small team of analysts can really spot exceptional opportunities over such a wide net. A prospectus of an international mutual fund usually goes something along these lines: “Gee, don’t we have a great life as an analyst as we trot the globe looking for opportunities!”. A pure sales job, with little transparency.
-It seems to me that a company like IBM, with a huge global footprint, will do a much better job spotting opportunities in the overseas market than a small team of analysts.
Discuss.
ishtar – PBR (cheaper if you buy PBR.A) and NE
BHO, getting the timing wrong is the same thing as being wrong, whether it’s real estate or the stock market.
You missed HAlf Off Peak Comps…they occurred back in 2000-2001.
BWAHAHAHAHAHAHAHAHA
Stupid Q – why is okay to borrow money from yourself? Isn’t that what’s going on with the Fed buying Treasuries?
Dibs – ummmm are you forgetting? I worked for a record label for the past 12 years, my company used Fidelity for the 401K’s so I will give Fidelity a call to switch it over asap!
“You didn’t even get the DOW8000SP800 call correct.”
No, I got the call correct. Just not the timing and nor was I trying to (not a gambler). Peep the archives. And you ridiculed me up until it broke through 8000/800.
“Nor did you profit from it on the way down or the incredibly swift move back up.”
Nice shift from whether my prediction would come to pass to “but but but…you didn’t gamble any money, get the timing exactly right and luck out and win”. Wasn’t my objective, DIBS. I’m simply waiting for the REAL in real estate to return. Intrinsic value absent fraudulent, no-body-turned-down underwriting.
You’re a piece of work, DIBS.
***Bid half off peak comps***