-
IP addresses are NOT logged in this forum so there's no point asking. Please note that this forum is full of homophobes, racists, lunatics, schizophrenics & absolute nut jobs with a smattering of geniuses, Chinese chauvinists, Moderate Muslims and last but not least a couple of "know-it-alls" constantly sprouting their dubious wisdom. If you believe that content generated by unsavory characters might cause you offense PLEASE LEAVE NOW! Sammyboy Admin and Staff are not responsible for your hurt feelings should you choose to read any of the content here. The OTHER forum is HERE so please stop asking.
where the money going to be in the next decade?
- Thread starter nutbush
- Start date
We are sitting on a nice bubble now.
Be a lender, not a borrower, going forward.
I believe smart money are heading for bonds.
But the bond market is a big bubble too. Well, it all depend on Fed to pump the $$$.
Excellent point. you just made a trillion dola statment. Let me go into greater details on this.
Based on the assumption that all investment-grade bonds (eg. sg govt bonds, local banks) will be redeemed upon maturity. bond investors (without bond-financing) are not concerned about Bond prices. However, bonds can bankrupt a speculator who took up Bond-financing (borrow money to buy bonds). Eg. Apple issued a 3.85% bond due to in 2043 a few years ago and the price crashed to 20% below par value in Nov 2013. Any speculator with 70% or 80% for these "safe" Apple Bonds would be hurt.
As such, you are very correct that bond is in a bubble now because bond prices went up lately.
Bond Price Up = Yields down.
Bond Price Down =Yields Up
But there is a very weird phenomenon now:-
- Yellen mentioned that next year interest rates will go up.
- Cost of financing for corporations in the macro environment also increases
- Even UOB Economic Treasury Research also anticipates the 10Y S$ SOR, which is closely associated with 10Y SGS, to reach 2.55% by end-13, 2.65% by end-14 and 4.0% by end-15.
- Even on personal front, car loans, housing loans are increasing.
Conclusion: interest rates is raising.
So strangely, bond prices went up even more to offset the upside in rates (anticipation) = yields remain the same or drops. This is why Mr Kiss says that bonds is bubbling too.
This type of phenomenon is short-lived and unusual eg. inverse yield curve. This type of situation hints at trouble ahead, eg recession or war coming. I dunno why yet.
the money is in the next recession market or global meltdown......buy when everyone is selling.
He's a satire writer.
sell God story. See how CHC make so much money and even gahments cant stand them and have to give tax free to them.
like our Sam?
The city never sleeps, that is where it all matters
nice one by tan kin lian..
http://tankinlian.blogspot.sg/2014/05/what-happens-when-america-does.html
What actually happens when America introduces Quantitative Easing?
Quantitative Easing (QE) sounds like a respectable word. It seems to be a legitimate tool that can be used to stimulate the economy. So, it seems.
When the US Federal Reserve Board or FED introduce this term, it is a nice word for reducing the interest rate in the economy. This is achieved by printing money, and making large supply of US dollars available to businesses at low cost. The aim is to stimulate the economy.
It also benefits the US government by reducing the interest rate that the it has to pay for the debt, or government bonds that it has to issue to fund its deficit.
Normally, when a debtor increases its debts, it has to pay a higher interest rate to compensate the lenders for the risk of inflation and depreciation of the currency. But, it does not happen to America. The world and its lenders seem to have confidence in the US government, in spite of its increasing debts. They continue to be quite happy to take up the new issue of long term bonds, even when the interest rate is rather low and inadequate to compensate them for the risk of inflation and a small risk of default.
The lenders are the countries with large surplus in its balance of trade, such as China and Japan. They continue to invest in the debts of the US government.
After a few years, the lenders start to worry. They are holding on to too much US debts. They are not so keen to take up additional debts. They start to look for other countries to invest their surpluses.
What does the US government do? They need to have lenders to invest in the new debts that they have to issue to fund their deficits, and to refinance the maturities of the old debts. If it is clear that the foreign funds are not investing in the new debts, the interest rate will increase sharply. There will be a crisis - a loss of confidence.
Who can be counted to invest in the US government bonds, to replace the major lenders who are now feeling shaky about the quality of the debts? Who will not ask any question and invest in the bonds as a duty under "national interest"? Of course, it has to be the Americans - the corporations, fund managers and the individuals. It is important to protect the "national interest".
Unfortunately, these institutions and individuals are not so patriotic. The individuals and institutions have to look after their self interest. This is how the free market and private interest works.
There is one institution that can be counted to be the lender of last resort, that can take the burden of looking after the national interest. It is the faithful US FED. They can buy over the bonds that foreigners and even their own private investors are not keen to buy.
They introduce a new concept, called "asset purchases". The US FED will buy over the bonds and other mortgages that other investors are not keen to have.
The US financial experts are truly innovative. At first, they print money and issue government bonds at low interest rate. Later, when the foreign and private investors are not keen to invest in these bonds at the miserable interest rate, they get their own FED to take over these debts and give it a nice term, called "asset purchase".
The US FED is now reducing its "asset purchase" program, but it reality they are still continuing the buy the debts, but of a smaller quantity. The total debt of the US government continues to increase to a very large number, in trillions of dollars.
So far, so good. As long as the foreign investors are willing to hold on to the debts, and continue to invest in the new issues, it will be all right. But, what if they decide to panic?
Tan Kin Lian
http://tankinlian.blogspot.sg/2014/05/what-happens-when-america-does.html
What actually happens when America introduces Quantitative Easing?
Quantitative Easing (QE) sounds like a respectable word. It seems to be a legitimate tool that can be used to stimulate the economy. So, it seems.
When the US Federal Reserve Board or FED introduce this term, it is a nice word for reducing the interest rate in the economy. This is achieved by printing money, and making large supply of US dollars available to businesses at low cost. The aim is to stimulate the economy.
It also benefits the US government by reducing the interest rate that the it has to pay for the debt, or government bonds that it has to issue to fund its deficit.
Normally, when a debtor increases its debts, it has to pay a higher interest rate to compensate the lenders for the risk of inflation and depreciation of the currency. But, it does not happen to America. The world and its lenders seem to have confidence in the US government, in spite of its increasing debts. They continue to be quite happy to take up the new issue of long term bonds, even when the interest rate is rather low and inadequate to compensate them for the risk of inflation and a small risk of default.
The lenders are the countries with large surplus in its balance of trade, such as China and Japan. They continue to invest in the debts of the US government.
After a few years, the lenders start to worry. They are holding on to too much US debts. They are not so keen to take up additional debts. They start to look for other countries to invest their surpluses.
What does the US government do? They need to have lenders to invest in the new debts that they have to issue to fund their deficits, and to refinance the maturities of the old debts. If it is clear that the foreign funds are not investing in the new debts, the interest rate will increase sharply. There will be a crisis - a loss of confidence.
Who can be counted to invest in the US government bonds, to replace the major lenders who are now feeling shaky about the quality of the debts? Who will not ask any question and invest in the bonds as a duty under "national interest"? Of course, it has to be the Americans - the corporations, fund managers and the individuals. It is important to protect the "national interest".
Unfortunately, these institutions and individuals are not so patriotic. The individuals and institutions have to look after their self interest. This is how the free market and private interest works.
There is one institution that can be counted to be the lender of last resort, that can take the burden of looking after the national interest. It is the faithful US FED. They can buy over the bonds that foreigners and even their own private investors are not keen to buy.
They introduce a new concept, called "asset purchases". The US FED will buy over the bonds and other mortgages that other investors are not keen to have.
The US financial experts are truly innovative. At first, they print money and issue government bonds at low interest rate. Later, when the foreign and private investors are not keen to invest in these bonds at the miserable interest rate, they get their own FED to take over these debts and give it a nice term, called "asset purchase".
The US FED is now reducing its "asset purchase" program, but it reality they are still continuing the buy the debts, but of a smaller quantity. The total debt of the US government continues to increase to a very large number, in trillions of dollars.
So far, so good. As long as the foreign investors are willing to hold on to the debts, and continue to invest in the new issues, it will be all right. But, what if they decide to panic?
Tan Kin Lian
Yeah no one brings out the humor in the irony of life and tickles the readers delight,the other is a dumbass troll.
Follow big nose "What you think" and short ass "you can earn more outside" Ok oredi, read what book is just futile, don't have to swallow ML's ideas as dogma.
He wasn't pointing at his back pocket, he was pointing at his Kah Ch$ng.
LOL ....................... LOL
LOL ....................... LOL
Solar Energy
There is a scheme in singapore that you can sell your solar power back to the local grid.
http://www.ema.gov.sg/page/32/id:65
PV Panels are dirt-cheap now but the local cost of installation is too high and rental.
PUB is testing now testing floating PV panels on reservoirs because the rental is nearly free.
http://www.channelnewsasia.com/news/singapore/pub-embarks-on-solar/1092750.html
Let's say that a bond gives you a predetermined coupon/interest of $50. In the past you buy the bond for $1000 = 5% yield
Now if you buy the bond at $1100 (price up) = 4.5% yield (yield down).
The global bond market value is nearly double of the global equity market value.
hahaaha.... and the global derivatives market is more than 12x the value of the global bond market. but please don't learn about this sector.
Similar threads
