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Full reserve banking will, indeed, always allow me to earn a mkt rate of interest, which, risk-adjusted, will be the risk-free rate. However, humans, being human, will always demand excess yield. How do you deliver that with full-reserve lending, pray tell? As to your point on leverage...

I am long some physical gold and I like this: http://www.telegraph.co.uk/finance/personalfinance/investing/gold/5720377/Gold-investors-add-43pc-to-holdings-of-bullion.html

I agree with RC on most of the points he made previously. As to banning fractional-reserve banking, that's yet another completely unrealistic idea. As I mentioned in another post, the reason we have fractional-reserve lending is because people want to earn interest. Unless you somehow ban...

I think this is actually the third thread on the subject...

Dividend swaps come to mind...

Well, the 30y auction shall lead us and show us the way... Amen!

Well, even though I am not entirely clear about what you're saying, you can't really infer much... The 2s5s10s fly in futures is not really 2s5s10s as the CTDs are not necessarily 2y, 5y and 10y bonds.

Here we go, as expected... A Japanese government spokesman Kawamura stated that "excesive currency moves are undesirable for the stability of the economy and the govt will closely watch market moves".

JWM blew up on a bunch of RV trades that all went sour last year. Specifically, quite a few bad positions in inflation space (UK and yen), as well as the infamous yen asset swap box debacle. So it's not like they did anything too exotic. The problem is the size of the positions that were...

It's a bit early, but it things keep going this way, I think I'll start looking for some tasty intervention soon... Let the fun begin.

Apparently, it's on the back of the China commodity stories. First, this: LONDON, July 8 (Reuters) - A cape cargo of high-ash, low volatile content Australian coal is being offered already on the water at $72.00 a tonne CIF South China after the Chinese buyer cancelled the contract, traders...

I thought you did... I may have misunderstood, in which case I apologize.

I wasn't talking about hedging anything, so what does it have to do with transaction costs? Theoretical value (TV) for certain binaries is determined by pricing them as very tight spreads with some provision for an overhedge. Whether you then believe the TV you obtain is an entirely...

Some barrier options can be priced as extremely tight, leveraged put/call spreads... For the ones that have path dependency aspects, things get trickier.

OKI-DOKI, dude... I use mostly TradeWeb here for dealing and, occasionally, BTec or Espeed. Whatever charting I need to do I can do using a whole variety of tools, including home-grown ones.

1. I don't know what CQG is, but I am seeing 1.5 - 2 ticks spread in US 30y during NY time. 2. The EUR/GBP mkts are closed during Asian hours. Nothing trades, so it's no wonder that you're seeing zero liquidity. It only makes sense to look at the EUR mkt between 7AM and 9PM GMT. Again, I...

1. Probably not. 2. No, it doesn't make any sense. Convexity in the bond world is relevant because the value of a bond is convex wrt to the choice of measure (yield). I don't see how one would use time in this context. 3. I don't know. My Z$2c...

Ah, I understand... Since I come from a different world (rates), a strangle to me is always with both options OTM (I guess that's what you call an OTM strangle). To me, there's no such thing as an ITM strangle, as there's never any point in trading anything of the sort. Obviously, ITM...

This statement doesn't parse...

Look for the old Solly 'Understanding the Yield Curve' series of papers by Antti Ilmanen. It's one of the best...