IMHO bonds are in the same category of all the other worthless...

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kingpins

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22/08/14

14:28

Post #: 13858219
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Originally posted by All4One ↑

DAYTR

The U.S. Tbonds were high a few months ago and I use to comment on them. They were about a whole percent above where they are now. Russia sold something like 20% of its bond holdings and took the market down somewhat. The winding back of QE is also hitting the bond market. The reason being is that the U.S. Fed was holding something like 70% of its own Tbond debt just to keep them at a reasonable level and with the winding back of QE I think the market is worried about the Tbond market in general. I for one would not go near the U.S. TBond market at the moment unless they suddenly decide to ramp up more QE.

As for the AUD we are at odds on this. I think there is just far too much foreign money flowing into our banks and the country in general that the AUD will stay high and above 91c for the foreseeable future. What will happen if all the RBA's attempts to sell it down fail and it turns to crap on them? Will they put rates up then?? I doubt it but im known to be wrong and Im not privy to the dirty dealings of banks and governments so Its just a guess on my part.

As for the POG well its been down before and the depression in the EU is getting worse as is the Depression in the U.S., South America, Japan etc .

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IMHO bonds are in the same category of all the other worthless paper ( inc gold and silver) floating around the financial system they are worthless bits of IOUs

Many years ago there was a BIG Real Estate Company in Melbourne which borrowed from the banks a very large sum of money and the banks in their ultimate wisdom took the company shares as collateral

When the company failed naturally the shares were worthless.

Bits of paper have no value if they are backed by the company or country selling them

Bonds frighten me to death and they are going to kill the financial system of many countries before they fall out of favor
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0 Great analysis

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