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that's exactly what people were saying in 2009 about US banks...and they are more than fine today from balance sheet perspective. of course they profits in future is another story - the same will very likely go for europe's growth. but the point is that the balance sheet is solvable with...

this is big news. wait and see... http://www.telegraph.co.uk/finance/financialcrisis/8786577/Plan-B-Flood-the-markets.html Away from the stage-managed seminars, in the “private bi-laterals” and “break-out sessions” between officials, there was talk of progress. The Europeans...

not sure what it does to gold though. maybe the Friday's sell-off was in anticipation of something like that? surely vols will go down so gold should go down but then, isn't this all simply printing money all over again? i guess gold will stay strong in the medium term with some sell-off next...

Greece needs to default in order to make europe stronger. that's what russia does not want. i enjoy these naive comments above...

finally - it was always clear to everybody except politicians that this approach, i.e. Greece defaulting with max recovery of 50 cents on dollar combined with trillions in backstop money for other sovereign debt, has the lowest costs and is unavoidable. this (2trn, banks material recap a la...

epic call - let's book mark this thread. 25% down on unlevered capital in less than 2 weeks. i guess the poor man committed suicide after this...

i see. thanks. i was missing these FDIC insurance costs...

you are right. i don't want to park it there. but we saw many times in the past few years that there will always be some "fools" who buys into "low" yielding treasuries (and make money)..

btw can somebody finally explain me why IOER=0 is a bad thing now?

it is called discounting. of course low rates are usually during bad times when asset prices are unsurprisingly not sky high. but ceteris paribus discounting and cash flow is the only thing that rules investing...

because there is nothing risk free on moving cash into treasuries - especially USTs

it is a joke i guess: "immediately reach equilibrium" you know very well that it may take weeks for all cash making it into short term AND longer term treasuries...

banks will have to park money somewhere, i.e. treasuries. lower yields should benefit asset prices and reduce cost-of-carry - at least in the medium term...

sorry but i do not see that. we did not have IOER before 2008 and i don't see why it could not be dropped now. if dropped it should translate into asset inflation - and actually in inflation of all kinds but isn't it what fed wants?

could you please venture into explaining to us mortals why that would be the case? :-)

nice. if you take 30Y mortgage at 3.96 you end up paying $3 (three) dollars a month, i.e. about one 2-pound coin...

everybody who think about investing in HKD should consider the similarities and differences between Switzerland and Hong Kong (which happen to be economies of amazingly similar sizes). it is not irrational to bet on SNB success in defending the 1.20 level while at the same time bet that HK...

http://www.alsosprachanalyst.com/economy/so-you-want-to-bet-on-hong-kong-dollar-appreciating.html

http://www.businessinsider.com/ackmans-big-presentation-on-buying-the-hkd-2011-9

i too switched all my USD into HKD about 1 month ago after the US short rates were decided to stay low for ever. given the minimal negative carry I pay I am willing to wait for years for HKD to appreciate from the 7.75/7.85 band. but as asia/china is in a secular uptrend it makes sense for HK...