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Wednesday, February 6, 2013 - 8:21amSanction this postReply
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Mainstream media Forbes article recommends not to have bonds, to have gold instead: Playing the big bond meltdown without getting burned. They suggest 3 scenarios for why interest rates would increase: inflation, US economy growth, and global economy growth. The first implies to invest in commodities, the 2nd & 3rd currencies and stocks.

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Wednesday, February 6, 2013 - 7:30pmSanction this postReply
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Things I am playing with:
Silver bullion.
http://www.etfs.bmo.com/bmo-etfs/glance?fundId=80001
REIT ETF's. Even when people have a mortgage crisis, people still rent,and businesses still rent office space.

http://www.etfs.bmo.com/bmo-etfs/glance?fundId=92496
For now taking advantage of S&P strength, I like ETFs as the management costs compared to mutual funds is better not to mention no huge premiums of CEF's. and the high liquidity is a bonus.

http://www.etfs.bmo.com/bmo-etfs/glance?fundId=86812
Also a newer ETF that is a balance of bonds and equities.

And this last one I grabbed last week because the price was right, It is a small cap fund that looks like it may be on the upswing anddd its paying 16% dividends so I grabbed some for shits n giggles.

http://finance.yahoo.com/q?s=HNY.TO




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Thursday, February 7, 2013 - 6:06amSanction this postReply
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Wreck on Rails.

The former #1 willing debt holder of US Treasury debt was the SS Trust Fund.

No more, no matter how willing. SS is now a long term beggar at Treasury, demanding the retiring of old debt.

So when Congress blithely puts pen to paper and raised the 'meaningless' debt ceiling, not only do they need to find brand new willing debt holders, but they need to replace the former number one willing holder of US Debt.

Our crack addiction on debt is inexorably going to explode as those interest rates inexorably climb.

1.43 to 2.04 is just an increase of 0.6%, right?

It is also a nearly 42% increase in debt service.

This is going to start moving quickly; within Obama's term.

The confluence of a massive sucking pipe and an empty well now meet.

good luck.

regards,
Fred

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Thursday, February 7, 2013 - 6:20amSanction this postReply
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Based on current trends, this tribe will not limit itself to paying higher interest rates to meet its insatiable needs. A 42% jump in debt service is already far more than it can afford.

It will take, one way or the other. That is a short term solution as well, but that is what it will do. And then what?

Don't think of this as politics; think of this as being trapped on the surface of a planet with a growing mold, devouring everything in its path. In that world, Clorox is Gold, for as long as the Clorox holds out.

None of us have a crystal ball. My sister, God bless her, still has great faith in the tribe, that DC will soon wither and this nation will right itself and clean up the mess. She has a lot of faith.

Or, Hollywood has never imagined the kind of zombies in the streets madness that this nation is about to unleash on itself as it circles the drain and clings to the failing gig.

regards,
Fred



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