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By DeadCatBounce on February 17, 2011 6:14 PM
“Legion, the problem with QE2 is that there is no exit strategy.
The Fed has all this junk on there balance sheet, average 10 yr maturity, which makes it very risky paper.
When interest rates rise, they will start losing money like crazy.
Nobody is talking about this, but it is basic and unless tghere is some secret unknown mojo, unavoidable.”
DCB,
If you were to advise someone with a chunk of cash in a bank on what to do to hedge against this risk,
what would tell them?
By DeadCatBounce on February 17, 2011 6:14 PM
“Legion, the problem with QE2 is that there is no exit strategy.
The Fed has all this junk on there balance sheet, average 10 yr maturity, which makes it very risky paper.
When interest rates rise, they will start losing money like crazy.
Nobody is talking about this, but it is basic and unless tghere is some secret unknown mojo, unavoidable.”
DCB,
If you were to advise someone with a chunk of cash in a bank on what to do to hedge against this risk,
what would tell them?
Cobble, try to espresso yourself without being mean.
Not feeling too robusto, dibs?
You all are a bunch of drips.
Why, Dave, is your email Chock Full O’Nuts?
I’ve bean trying to get out of here for a while now.
“All this coffe talk made me perc up.”
Don’t be such a drip, DIBS. : P
Arabica doing something else.
I won’t be here until Eight O’Clock either.