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Finance - Investments Sub-forum: Non-Actuarial Personal Finance/Investing

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  #41  
Old 09-23-2009, 03:41 PM
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Quote:
Originally Posted by campbell View Post
...so they're pushing it from the short-term more to the long-term, now?
It's all about cash flow! Why pay your debts back in four weeks when you can pay them back in ten years? Somebody else will be president then.
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  #42  
Old 09-23-2009, 03:43 PM
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Sounds like a plan!
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  #43  
Old 09-29-2009, 02:22 PM
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Quote:
Originally Posted by today's 4-week auction
Term and Type of Security 28-Day Bill
CUSIP Number 912795P96


High Rate
0.040%

Allotted at High 37.39%

Price 99.996889
Investment Rate
0.041%

Median Rate 0.005%
Low Rate 0.000%


So what exactly is the point of buying a 4-week Treasury bill that pays 0.00%? You give the Treasury $10,000 today and four weeks later they give you back $10,000. Seems like a pointless exercise. What am I missing???
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  #44  
Old 09-29-2009, 09:05 PM
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What was the point of the effectively negative interest rates in Japan for n years [where I do not recall n]?

To wit: heck if I know.
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  #45  
Old 11-23-2009, 06:07 AM
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Rolling rolling rolling, keep that debt a rolling....

http://www.nytimes.com/2009/11/23/bu...ates.html?_r=1

Quote:
Treasury officials now face a trifecta of headaches: a mountain of new debt, a balloon of short-term borrowings that come due in the months ahead, and interest rates that are sure to climb back to normal as soon as the Federal Reserve decides that the emergency has passed.

Even as Treasury officials are racing to lock in today’s low rates by exchanging short-term borrowings for long-term bonds, the government faces a payment shock similar to those that sent legions of overstretched homeowners into default on their mortgages.

With the national debt now topping $12 trillion, the White House estimates that the government’s tab for servicing the debt will exceed $700 billion a year in 2019, up from $202 billion this year, even if annual budget deficits shrink drastically. Other forecasters say the figure could be much higher.

In concrete terms, an additional $500 billion a year in interest expense would total more than the combined federal budgets this year for education, energy, homeland security and the wars in Iraq and Afghanistan.
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  #46  
Old 11-23-2009, 11:53 AM
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Years and years of learning, training, and experience lead me to suggest this technical assessment: we are f*cked.
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  #47  
Old 11-23-2009, 01:32 PM
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The world's biggest adjustable rate mortgage, and the teaser rate is about to reset. We are well and truly f*cked.
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  #48  
Old 11-23-2009, 01:33 PM
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"well and truly"

I didn't want to make it too technical.
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  #49  
Old 11-23-2009, 02:28 PM
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"If the economy grows fast enough, the government's revenues from taxes would rise faster than its debt payments, allowing it to spend more. It is every politician's wet dream."

There. IFTQ.
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  #50  
Old 11-23-2009, 03:12 PM
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Well, we and the people who are owed the principal.

Anybody see the cold opener for SNL this past weekend?
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