Why France is on the road to becoming the new Greece – Telegraph Blogs
"...the Americans both have two options not open to eurozone France.
Firstly, they can continue to print paper to honour their debts and thus
sustain otherwise impractical debt payments. Secondly, ... the
option of cancelling the bond issues purchased by their central banks
using Quantitative Easing. In a stroke, this would reduce public debt
back to less than 50pc of GDP.
Uhhhh, How's that work again?
Meanwhile, over in TIPS land:
Inflation Indexed Treasury
COUPON MATURITY PRICE/YIELD PRICE/YIELD CHANGE TIME
5-Year 0.125 04/15/2017 106-11+ / -1.18 -0-04+ / 0.027 13:22
10-Year 0.125 07/15/2022 108-20+ / -0.71 0-03+ / -0.009 13:22
20-Year 3.375 04/15/2032 168-16½ / -0.07 0-12 / -0.014 13:22
That's not a typo: A 68% capital gain on a TIPS bond. What could possibly go wrong?
Read The calm before the storm
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