tag:blogger.com,1999:blog-663998076511109850.post6968764735807014266..comments2023-11-05T04:33:11.265-08:00Comments on Maison Fleury: Ugly comments from FTadt43wt342http://www.blogger.com/profile/07557608193924044365noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-663998076511109850.post-62794187751247021652009-02-17T08:30:00.000-08:002009-02-17T08:30:00.000-08:00It will be interesting to see. I suspect that the...It will be interesting to see. I suspect that the US will be seen as the safest haven for money. Until the threat of deflation is gone, the US will probably be able to sell treasuries at steep discounts to anyone else. Maybe, as the German failure shows, others will not be able to sell at all. What happens to them then?<BR/><BR/>Someday, it will change and the scent of inflation will over power the concerns of deflation. At that point, interest rates rise dramatically.<BR/><BR/>The question is, how long will that take and how much damage will the US have wrought?Andrew Meyerhttps://www.blogger.com/profile/13950859437400162668noreply@blogger.comtag:blogger.com,1999:blog-663998076511109850.post-71373138937180382342009-02-17T04:52:00.000-08:002009-02-17T04:52:00.000-08:00fighting recession with inflation supposes that in...fighting recession with inflation supposes that inflation is something that can indeed be controlled. sort of like fighting a fire with a back fire. looks good on paper, but when it gets out of control - things can go very wrong very quickly. and in this case the invisible hand could go berserk.<BR/>my thinking is the cause of the problem should be addressed head on and isolated... isolate the "toxic" securities and throw those that created them into the brig. in a very public manner.<BR/>the separation will take a big gulp to get down, and the incarceration of the "scoundrels" will help everybody feel better quickly. a venting of the spleen so to speak.<BR/>I'm sure there are some "rules" that were broken... even if we have to creatively dig some up... it could be done. <BR/>it may even be in the doing now - governments take a very long time preparing their cases.<BR/>my 2 cents worth. perhaps over priced.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-663998076511109850.post-79487977981100546852009-02-16T12:21:00.000-08:002009-02-16T12:21:00.000-08:00Thanks the link Andrew, yes it boggles the mind, a...Thanks the link Andrew, <BR/><BR/>yes it boggles the mind, although with the $3T coming down the pike I would be surprised if the bonds hold at that rate.adt43wt342https://www.blogger.com/profile/07557608193924044365noreply@blogger.comtag:blogger.com,1999:blog-663998076511109850.post-10742273827100560262009-02-16T08:25:00.000-08:002009-02-16T08:25:00.000-08:00There was a very interesting event last Thursday t...There was a very interesting event last Thursday that I thought should have sent shivers down European spines. <BR/><BR/>For the second time this year, Germany failed offering 10-year bonds at 3.38%. <BR/>http://www.ft.com/cms/s/0/8121d176-f8a6-11dd-aae8-000077b07658.html?nclick_check=1<BR/><BR/>If Germany cannot sell government bonds, what other European country has a hope? If European governments cannot sell bonds to fund stimulus, bank assistance etc., their economic options become very limited.<BR/><BR/>Compare that to the US, which has no difficulty selling 10 year bonds at 2.75%<BR/><BR/>I'm starting to understand the theory of relative advantage in a whole new way and becoming considerably more optimistic about the US.Andrew Meyerhttps://www.blogger.com/profile/13950859437400162668noreply@blogger.com