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I know, but I'd like to know what economic genius is behind it... Maybe they make unusual assumptions, like wars etc.

Dude, pls try not to digress... If you want to continue arguing with me about other subjects, do contain yourself to the threads where they were being discussed. No need to spread your sour grapes all around the place. As to Karmabanque and Max Keiser, he tried to launch an activist hedge...

Anaconda: That's an even funnier comment, amico... Keep 'em coming, I am starting to rely upon you to provide me with quality entertainment. To BLSH: I think it's funny because it's a video of a reportedly very wealthy financier, who reportedly runs a hedge fund, ranting about the pure evil...

This is a very funny video... Loved it for its entertainment value, but I'm afraid it's a complete load of nonsensical bullsh1t otherwise.

Who estimated that, I wonder? Is it a real or nominal GDP estimate?

Actually, if all you're referring to is the spread between U9, Z9, H10 etc contracts, that really doesn't have much to do with the rates, necessarily. One of the reasons for these positive rolls is just the structure of the deliverable basket. For the 10y note, for example, the U9 contract...

Ignoring everything else that may happen to your option position when the mkt moves, let's look at your question simplistically. When you exercise your call option, you're effectively selling the option for 0 and buying the underlying at the strike price of 99.50. So what you're missing is the...

This is funny... http://www.ritholtz.com/blog/2009/07/goldman-sachs-in-talks-to-acquire-treasury-department/

Very cryptic, but true, nonetheless...

Dude, I do not know what which part of the sell side you're involved with. Obviously, there are areas where finance research is not relevant, but everyone in the world of macro trading/investing (esp rates and fixed income) listens to economists like Krugman. This relationship is not a one-way...

What exactly is wrong with this? He's making a purely academic argument about the zero bound and how to circumvent it.

No, of course it doesn't. Does the fact that Newton believed in and practiced alchemy invalidate the foundations of classical mechanics?

No, the logic of the article is actually a bit convoluted... They're saying that, as USD weakens in the mkt, the Chinese increase their USD reserves in an effort to maintain the RMB peg. Which means that their portfolio ends up overweight USD. However, this also implies that, to prevent...

NP... It's not that difficult, if it weren't for all the little nasty technicalities.

The procedure is very simple, but will probably require a spreadsheet. 1. Determine the sensitivity of your mortgage to a 1bp move in each of your forward fixings (you're going to have to make some assumptions) 2. This will give you your bucketed DV01 exposure, but with yearly buckets. 3...

You really shouldn't... Do you have a view on how the Fed is going to react to inflation? Do you have a view on the timing of Fed hikes? What about LIBOR? Also much depends on the time horizon of your view, as Eurodollars may not go out far enough.

This might clarify things (or it might be the same FT article, which I can't read)... http://online.wsj.com/article/BT-CO-20090716-700031.html In general, it doesn't sound as if they're explicitly intervening, which implies that it would be hard to be certain about the direction the Aussie...

This is long, but it's priceless and well worth a read... http://bankimplode.com/blog/2009/07/16/security-savings-bank-not-so-solid-ground/ P.S.: My religious and political views have nothing to do with the reason for posting...

Take out as much fixed-rate debt as you possibly can and buy stuff with it. You will be happy, while the people who you will be paying the coupons to won't be.

I suppose, on the margins, one should be bearish Aussie on the news you have cited. However, it's not clear whether the RBA is purposefully intervening to weaken the currency or if it's just them playing around with their portfolio (who knows, maybe they managed to somehow get long Aussie...