Comments on: U.S. benchmark bond sell-off accelerates http://blogs.reuters.com/john-kemp/2009/05/28/us-benchmark-bond-sell-off-accelerates/ John Kemp's Profile Tue, 29 Nov 2016 12:09:26 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: perlengkapan bayi http://blogs.reuters.com/john-kemp/2009/05/28/us-benchmark-bond-sell-off-accelerates/comment-page-1/#comment-166 Tue, 12 Oct 2010 13:41:31 +0000 http://blogs.reuters.com/john-kemp/?p=10#comment-166 We are screwed wherever we live. Detroit is just one of the first in line. Gotta wonder whether the workers will be happy their union wouldn’t budge. I would sooner take a lower salary, and work for less pay, and hope I get a raise in the future when things get better. If someone said you are going to lose your house, but I will save it if you lower your heat, and drink more water instead of juice…To me its a no brainer.

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By: perlengkapan bayi http://blogs.reuters.com/john-kemp/2009/05/28/us-benchmark-bond-sell-off-accelerates/comment-page-1/#comment-165 Tue, 12 Oct 2010 07:01:59 +0000 http://blogs.reuters.com/john-kemp/?p=10#comment-165 I don’t think right now we should. I also don’t blame the Union members. I think the blame, not that it will help, but it should go to the CEO’s and the extremely high prices of vehicles.

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By: Don the libertarian Democrat http://blogs.reuters.com/john-kemp/2009/05/28/us-benchmark-bond-sell-off-accelerates/comment-page-1/#comment-1 Thu, 28 May 2009 15:02:30 +0000 http://blogs.reuters.com/john-kemp/?p=10#comment-1 “(1) Is this simply an unwinding of the unsustainable “bubble” that had emerged in US Treasuries during the flight from risk, that is now gradually deflating as risk aversion ebbs. If so, the movement should be fairly limited and could be interpreted as part of the “normalisation” of financial conditions.”

My view has been that, for QE to work,especially against Debt-Deflation, you need short term interest rates to stay low, while you need long term interest rates to rise. In terms of incentives, you want to attack the fear and aversion to risk, by having a disincentive to buy short term bonds at no yield, the flight to safety, giving a push towards stocks and corporate bonds, and you want rising long term interest rates, signaling confidence in a recovery, as the spread is widening, and giving an incentive for longer term investing. It seems to be working.

I think that this is the first post that I’ve found that at least posits this position, but I thought that this is what Bernanke was aiming for when he said that he wanted to attack the problem of the fear and aversion to risk. Quite frankly, the longer and shorter term rates moving in tandem doesn’t make sense to me, unless you’re trying to work simply on mortgage rates, which to me is a bad idea.

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