tag:blogger.com,1999:blog-4921988708619968880.post5519473314575997779..comments2024-02-28T22:03:57.237-05:00Comments on The Automatic Earth: Debt Rattle, September 16 2008: Feeding the FearIlargihttp://www.blogger.com/profile/09698428009501267664noreply@blogger.comBlogger71125tag:blogger.com,1999:blog-4921988708619968880.post-61801270424169402692008-09-17T17:23:00.000-04:002008-09-17T17:23:00.000-04:00I understand, and agree.I'm saying that I have cas...I understand, and agree.<BR/><BR/>I'm saying that I have cash, and trading it in for US treasuries seems like a bad idea to me.Unknownhttps://www.blogger.com/profile/16632600430004147895noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-90238609759407686612008-09-17T16:29:00.000-04:002008-09-17T16:29:00.000-04:00What I'm trying to say is that the T-bill and the ...What I'm trying to say is that the T-bill and the dollar bill are both debts of the central government. Just because you handle one every day, and the other is kind of mysterious, doesn't make one safer than the other. I'm not trying to talk anybody into or out of any particular investment.Unknownhttps://www.blogger.com/profile/15089309900399973503noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-9928965105826214442008-09-17T16:16:00.000-04:002008-09-17T16:16:00.000-04:00not giving out investment advice. It just strikes...not giving out investment advice. It just strikes me as silly to sell your T-bills in order to sit on wads of cash. Now if you want to buy gold (which went up $90 today) or collectables at least there's a rationale.<BR/><BR/>If you pull a dollar bill out of your wallet you will see it says it is a federal reserve note. Which is to say an IOU from the federal reserve.Unknownhttps://www.blogger.com/profile/15089309900399973503noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-42668333915556402622008-09-17T15:49:00.000-04:002008-09-17T15:49:00.000-04:00RobertWhat is the point of a treasury note? It's a...Robert<BR/><BR/>What is the point of a treasury note? It's a very safe investment that earns next to nothing, no? If it ceases to be very safe, then I say why bother.Unknownhttps://www.blogger.com/profile/16632600430004147895noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-39254442080222870802008-09-17T15:42:00.000-04:002008-09-17T15:42:00.000-04:00N, more likely he'll take a wheelbarrel full of te...N, more likely he'll take a wheelbarrel full of tens for a perfectly good apple. The government can and will print unlimited amounts of cash before they'll default on treasuries.Unknownhttps://www.blogger.com/profile/15089309900399973503noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-59495482250750070092008-09-17T14:23:00.000-04:002008-09-17T14:23:00.000-04:00Robert said:if you think treasuries will become wo...Robert said:<BR/><BR/><I>if you think treasuries will become worthless, what's the point of sitting on a bushel of green paper?</I><BR/><BR/>I don't know that they will, but I'm not willing to bet on it for a very small return.<BR/><BR/>Seems to me, the guy down the street selling apples is more likely to take a green piece of paper that says 10 than a white piece of paper that say 1000.Unknownhttps://www.blogger.com/profile/16632600430004147895noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-72258520040773080152008-09-17T14:08:00.000-04:002008-09-17T14:08:00.000-04:00Forrest,Large-scale socioeconomic structures never...Forrest,<BR/><BR/>Large-scale socioeconomic structures never work in practice as they should in theory, as the abstract models neglect the human element. Moreover, any system that has lasted a long time eventually becomes rigid and sclerotic due to the power of vested interests. Capitalism and communism are not so different in any case - both are ultimately utopian projects destined to fail.<BR/>Stoneleighhttps://www.blogger.com/profile/15099878430757036461noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-45000210397333331812008-09-17T13:33:00.000-04:002008-09-17T13:33:00.000-04:00Right you are OC, One must state clearly to one's ...Right you are OC, One must state clearly to one's financial advisor (in writing if necessary) that ones risk tolerance is zero. They will move one to cash as quickly as one likes or risk the loss of a client and all those future good returns that will happen when the sun shines and the birdies sing again. I suggest Credit Union Financial people as they are not by a long shot as dependant on Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-73873671155228602122008-09-17T13:28:00.000-04:002008-09-17T13:28:00.000-04:00How's this for bad news:The Federal Reserve has go...How's this for bad news:<BR/><BR/>The Federal Reserve has gone broke and is out of money. The Treasury is creating an emergency loan for the Fed.<BR/><BR/>Pretty sweet, huh?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-75027695644963956512008-09-17T12:48:00.001-04:002008-09-17T12:48:00.001-04:00This is too sweet ... an oxymoronic entry for toda...This is too sweet ... an oxymoronic entry for today's Debt Rattle?<BR/><BR/>http://www.marketwatch.com/news/story/how-bad-its-actually-pretty/story.aspx?guid=1B147F0F-2256-4CB4-A1BA-9136F4112570&dist=SecMostMailedAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-31091140135554653412008-09-17T12:48:00.000-04:002008-09-17T12:48:00.000-04:00I think many of us are forgetting all this is happ...I think many of us are forgetting all this is happening in other countries as well. The dollar isn’t ready to die yet, at least in the medium term. If you’re looking for a “safe” currency, what are your options? The Euro? The Yuan? The Rouble? A Middle East currency? The dollar may only be backed by the full faith of the U.S. government, the financial system may be in the pan and ready to go downgoritsashttps://www.blogger.com/profile/09767556060065779629noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-25310212076824405482008-09-17T12:38:00.000-04:002008-09-17T12:38:00.000-04:00if you think treasuries will become worthless, wha...if you think treasuries will become worthless, what's the point of sitting on a bushel of green paper?Unknownhttps://www.blogger.com/profile/15089309900399973503noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-86075592431773752142008-09-17T12:29:00.000-04:002008-09-17T12:29:00.000-04:00MarianneJust a words of advice on professionals. ...Marianne<BR/><BR/>Just a words of advice on professionals. A professional would make little commission on a cash account or CSBs or anything like that. Ergo, if your professional is like the one my in-laws used, he/she will sit you down and say "give your head a shake. Trust me. Markets go up and down. This is a long term thing and, long term, things always go up".<BR/><BR/>After the stock Farmerodhttps://www.blogger.com/profile/03492165772535123915noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-77712584988160401022008-09-17T12:22:00.000-04:002008-09-17T12:22:00.000-04:00S&P’s Chambers: says pressure is building on t...S&P’s Chambers: says pressure is building on the AAA US sovereign rating<BR/> - says the AIG bailout weakens the US fiscal profile<BR/> - says the ratings remain stable<BR/> - says the AAA rating is not a “god-given gift”, the AAA rating must be earned, it is not guaranteed<BR/><BR/>zAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-37244790095559053522008-09-17T12:08:00.000-04:002008-09-17T12:08:00.000-04:00U.S. TREASURY TO ISSUE DEBT TO EXPAND FED'S BALANC...<B>U.S. TREASURY TO ISSUE DEBT TO EXPAND FED'S BALANCE SHEET</B><BR/><BR/><BR/>--------------------------------------<BR/><BR/><BR/>How long before the Bond Market says, "go to Hell"?<BR/><BR/>How long before our Treasuries are worthless? <BR/><BR/><B>At the current rate of change, it may only be a matter of months...</B>Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-64264137004041564852008-09-17T12:07:00.000-04:002008-09-17T12:07:00.000-04:00Marianne,Just a note on how I am positioned at thi...Marianne,<BR/><BR/>Just a note on how I am positioned at this moment. <BR/>All stocks gone, 10% money market ( holding for a soon happening anniversary date) 15% Treasuries, 10% GIC's and the remainder in several bank accounts,<BR/><BR/>Will be looking at Canadian Savings bonds in October, not sure how I will structure them as there are several options that look good for different reasons.<BR/><Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-53140071146418664662008-09-17T12:02:00.000-04:002008-09-17T12:02:00.000-04:00outtacontrolI think I can buy them online. Redeemi...outtacontrol<BR/><BR/>I think I can buy them online. Redeeming them might be an issue - not sure.<BR/><BR/>No way I'm buying US Treasuries. Confidence Meter pegged at ZERO.Unknownhttps://www.blogger.com/profile/16632600430004147895noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-61183073246532473182008-09-17T11:55:00.000-04:002008-09-17T11:55:00.000-04:00NI assumed you were Canadian asking about CSBs. I...N<BR/><BR/>I assumed you were Canadian asking about CSBs. If you're American, I'm not sure whether you can buy CSBs or whether you'd be able to do much with them in the US if you could but them.<BR/><BR/>BTW, everything I say is for entertainment value only and not to be taken as financial advice. I'm a bit of a retard, actually. Having said that, Americans might want to consider Farmerodhttps://www.blogger.com/profile/03492165772535123915noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-57173367510518833622008-09-17T11:46:00.000-04:002008-09-17T11:46:00.000-04:00outtacontrol said:I can go into any bank that's op...outtacontrol said:<BR/><BR/><I>I can go into any bank that's open, and get cash</I><BR/><BR/>Any bank? Or any Canadian bank?<BR/><BR/>Forgive my ignorance on the subject, but I'm unclear as to whether the generic US bank down on Main St will redeem it.Unknownhttps://www.blogger.com/profile/16632600430004147895noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-53629292982615208742008-09-17T11:38:00.000-04:002008-09-17T11:38:00.000-04:00I should add that savings bonds can be registered,...I should add that savings bonds can be registered, so you pay no withdrawal tax on moving RRSPs from a bank into the bonds (depending on your bank/investment institution, though, they may charge you an unrelated private removal fee).Unknownhttps://www.blogger.com/profile/15614205920972531674noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-46421159214163766892008-09-17T11:35:00.000-04:002008-09-17T11:35:00.000-04:00I'm in favour of shunting investments into Canada ...I'm in favour of shunting investments into Canada Savings Bonds, as well. For myself, I'm shifting my RRSPs (currently in GICs at a big bank) over to them next month. Short of taking the money out and burying it in a hole, this is the safest option for reasons OC already went into.Unknownhttps://www.blogger.com/profile/15614205920972531674noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-47052005508871103072008-09-17T11:32:00.000-04:002008-09-17T11:32:00.000-04:00Marrian said: independent investment house that o...Marrian said:<BR/><BR/><I> independent investment house that only sells mutual funds (their own - similar to PH & N, but not them).</I><BR/><BR/>I take it from the PH % N you are Canadian likely in Vancouver? , If your financial planner can't handle all you feel you need to do I would go to the nearest credit union and ask their financial advisor to handle your things (quite an easy process Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-28887011271623852822008-09-17T11:30:00.000-04:002008-09-17T11:30:00.000-04:00NNo, not because of the rate. The rate will be lo...N<BR/><BR/>No, not because of the rate. The rate will be low. It's because gov't debt won't fail before its banks. Will some Cdn banks fail? Possibly, perhaps probably. I don't know which one(s). But, if my bank fails, I don't want to line up to get my money. If I have a piece of paper guaranteed by the gov't, I can go to <I>any</I> bank that's open, and get cash.<BR/><BR/>It's the return Farmerodhttps://www.blogger.com/profile/03492165772535123915noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-36511402525049484942008-09-17T11:09:00.000-04:002008-09-17T11:09:00.000-04:00outtacontrol said:On October 6, buy Canada savings...outtacontrol said:<BR/><BR/><I>On October 6, buy Canada savings bonds</I><BR/><BR/>Why buy these specifically? They're more likely than other investments to be worth more than the paper they're printed on? Because of the rate?Unknownhttps://www.blogger.com/profile/16632600430004147895noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-5015147059077311292008-09-17T10:44:00.000-04:002008-09-17T10:44:00.000-04:00Just on CNN Treasury to shore up Fed balance sheet...Just on CNN Treasury to shore up Fed balance sheet.Anonymousnoreply@blogger.com