Comments on: “Risk free” rate going way of free lunch http://blogs.reuters.com/great-debate/2008/12/10/risk-free-rate-going-way-of-free-lunch/ Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Gareth Evans http://blogs.reuters.com/great-debate/2008/12/10/risk-free-rate-going-way-of-free-lunch/#comment-3301 Tue, 16 Dec 2008 11:38:46 +0000 http://blogs.reuters.com/great-debate/?p=872#comment-3301 To the above commentor. While you rail against Mr Saf for his “rantings”, you make a rant of your own!

Nowhere in your post do you try to justify why Mr Saf’s article is bad; it is because you say so? In other words *your* post is the rant; at least Mr Saf puts forward some interesting points which he tries to elucidate with facts.

All he is actually saying is that the benchmark “risk free” status of the 10 year paper is somewhat more opaque than we thought it was, this is hardly saying that the sky is falling, or in your words “adding to the same paralysis and chaos”….

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By: Michael http://blogs.reuters.com/great-debate/2008/12/10/risk-free-rate-going-way-of-free-lunch/#comment-3264 Mon, 15 Dec 2008 16:42:32 +0000 http://blogs.reuters.com/great-debate/?p=872#comment-3264 We are where we are due to ethics and greed. The entire system from borrowers to Securities Companies, Banks and Insurers rose to an uncontrollable critical mass where they fed off each other. The financial model finally failed not due to inadequacy but because good common sense, rules and boundary lines became blurred and both Government (Congress) and Institutions (Business) either changed, ignore and/or forgot why they were there.

Now is time for bold action, the US should turn on the presses, purchase back our IOU’s from around the world ASAP, immediately impose a substantial gasoline tax and use these proceeds to bridge to energy self-sufficiency as quickly as possible. The window is small

The markets, business integrity and following the rules will sort the rest of this out over the coming years. I can’t get real enthused about trowing the baby out with the bath water re CAPM….just everyone follow the rules and prosecute severely those that don’t

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By: Adrian http://blogs.reuters.com/great-debate/2008/12/10/risk-free-rate-going-way-of-free-lunch/#comment-3257 Mon, 15 Dec 2008 12:53:59 +0000 http://blogs.reuters.com/great-debate/?p=872#comment-3257 Nobody sees that USA is changing into the socialism country, where a government makes the economy “working”. It is one way road only – bankruptcy.

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By: Gary Leeper http://blogs.reuters.com/great-debate/2008/12/10/risk-free-rate-going-way-of-free-lunch/#comment-3256 Mon, 15 Dec 2008 12:26:54 +0000 http://blogs.reuters.com/great-debate/?p=872#comment-3256 I see two big problems with allowing current Fed and Executive Branch bailout/stimulus policy to continue.
First, we are ratifying the feel good/no pain ever actions that have prevailed in both state and federal government for decades and making it ever more difficult to back away from this policy and ensuring that we get more and more government, where decisions have little to do with productivity.
Second, we are very negatively effecting the creative/destructive function of capitalism by propping up failed businesses and institutions and crowding out startups, which traditionally would have a positive affect on employment.
It appearss that crisis management experimenting will prevail regardless of the unintended consequences.

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By: John Stor http://blogs.reuters.com/great-debate/2008/12/10/risk-free-rate-going-way-of-free-lunch/#comment-3249 Mon, 15 Dec 2008 08:42:43 +0000 http://blogs.reuters.com/great-debate/?p=872#comment-3249 Some good comments here but what’s puzzling is the emotional aspects of the comments and the doomsday scenarios offered by some. Sure, the US consumers are at the heart of this mess and they have been led that way (you know the American Dream etc) but they are also the key to the recovery. Don’t be fooled the chinese or anyone else have little to offer in a way of future turnaround. And by the way US debt has one nice aspect to it – most of it is owed to itself ie. it’s not going to hurt once a decision is made to wipe it off – and it will come. I am more worried about Japan, it’s debt size is much bigger than that of US.

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By: James Harris http://blogs.reuters.com/great-debate/2008/12/10/risk-free-rate-going-way-of-free-lunch/#comment-3247 Mon, 15 Dec 2008 04:27:48 +0000 http://blogs.reuters.com/great-debate/?p=872#comment-3247 Judging by recent slow actions of the SEC in Enforcement matters and efforts to keep contraversy quiet one might guess that China is begining to pull the strings of more than just the US Treasury Secretary. We are only a store of value so long as we preserve our Values: Truth, Justice and Liberty are what make our debt a store of value, when we foresake these principals we will lose that leverage in borrowing from the international community. Cox’s resignation is overdue.

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By: Jim http://blogs.reuters.com/great-debate/2008/12/10/risk-free-rate-going-way-of-free-lunch/#comment-3244 Mon, 15 Dec 2008 02:39:08 +0000 http://blogs.reuters.com/great-debate/?p=872#comment-3244 Good comment by Anton K. — However, I think he has his pyramid upside-down. As a former broker, I can say that it’s the institutional investor who has all the money at the top, and that top is small because he’s lost a lot of his wealth. The little guy is definitely on the bottom and that’s why the pyramid is falling down. The base is ‘broken’……

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By: Derek http://blogs.reuters.com/great-debate/2008/12/10/risk-free-rate-going-way-of-free-lunch/#comment-3238 Sun, 14 Dec 2008 17:15:16 +0000 http://blogs.reuters.com/great-debate/?p=872#comment-3238 The bailouts slow down real economic activity. Instead of managing the business, everyone is running to Washington to see what they can get.

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By: Frank Lipsky http://blogs.reuters.com/great-debate/2008/12/10/risk-free-rate-going-way-of-free-lunch/#comment-3230 Sun, 14 Dec 2008 07:20:08 +0000 http://blogs.reuters.com/great-debate/?p=872#comment-3230 The reasons for collapse of the financial market place are simple
We fine the rich for their crimes(civil penalties).To deflect from this outrage we creates jobs for the poor by jailing people for selling pot and harder drugs and build new prisons and hire thousands of guards
Mexico is almost under the control of the drug cartel
Which is more immoral? Drug crime or white collar crime
!
Why not make milking investors of billions a offense equal to(economic )treason a criminal offense Until and unless we penalize the greed SOB’s can a revolution by the working classes be far off

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By: Graham Brown http://blogs.reuters.com/great-debate/2008/12/10/risk-free-rate-going-way-of-free-lunch/#comment-3197 Sat, 13 Dec 2008 02:37:35 +0000 http://blogs.reuters.com/great-debate/?p=872#comment-3197 To those who say we should stop having government intervention and let capitalism take its course – I agree – or I would agree except for one thing – the reason we are having to bail out the auto companies and the reason that we have lost millions of manufacturing jobs over the last 30 years is partially because of government intervention FROM OTHER COUNTRIES. If Japan had not artificially boosted the US dollar and depressed the Yen throughout the 70’s 80’s and 90’s and China had not followed suit in the 90’s and the 00’s the dollar would have slowly slid to about 50-60 yen and some lower amount in Yuan and a balance would have been created whereby Japanese and Chinese consumers would have gained purchasing power and American exports would have rose while imports would have decreased. America would not have run a monster trade deficit for three decades and Americans would not have had access to all this free easy money – they would have been forced to save and buy in moderation instead of being so wasteful (me included). So, if you chose to abstain from America bailing out its own vital industries – you are in effect choosing to conceed to the outcome created by foreign countries helping out thier industries – at our expense. It is the equivilent of getting attacked and not fighting back.

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