Argentina Defaults On Sovereign Debt

[50_Bip]

Quote from mkmps:

100 for 5? that is some silly thing to say..

I didn't say 100 for 5, I said 100 for 5 TO 10. C'mon man - get with the program! Interest rates are low globally, so getting above 10% is currently difficult.

i believe in 2002 we bought brazil bonds at something like 27.5 yield only to clip 2 coupons, and sell then at 13% yield with 100% cap gains...

So you found a risk/reward setup that was more like 1:4 instead of 10:1, and you got lucky - congrats. However, there are currently no opportunities such as this.

bonds can provide great opportunity at times...

Agreed, however now is not one of them; hence, bonds are a sucker's bet since there is no guarantee you will get your 100 back and you are currently receiving 5 to 10 for that risk.

 

[dandxg]

Quote from Hydroblunt:

Actually, US Government does not lie about any statistics. Every change & methodology is documented. There are tons of footnotes for you to read and understand how they derive their numbers.

Sure but let's be clear we are talking semantics now. When prices go up on fuel and food that's call inflation and we both know it.

 

[Gringinho]

A consumer economy where consumption costs - prices on consumer goods - are rising? Sure sounds like inflation.

On a larger scale it just seems like balancing consumption and prices around the world. Go globalization - all the way

 

[Hydroblunt]

Quote from dandxg:

Sure but let's be clear we are talking semantics now. When prices go up on fuel and food that's call inflation and we both know it.

It's not semantics, it's called statistics.

 

[gnome]

Quote from dandxg:

Sure but let's be clear we are talking semantics now. When prices go up on fuel and food that's call inflation and we both know it.

"Deception by convolution" is still a lie... regardless of what the Gummint calls it.

 

[thriftybob]

Quote from Hydroblunt:

Actually, US Government does not lie about any statistics. Every change & methodology is documented. There are tons of footnotes for you to read and understand how they derive their numbers.

They made the changes to the methods in order to get "better" numbers as a result. Note how low the once important Misery Index would be if added up now using government supplied numbers, vs what it would be if the calculation methods hadn't been changed (see shadowstats.com). In all honesty, I think the word "lie" is accurate and appropriate. They don't want the truth to be broadcast.

 

[lorax2013]

Quote from Hydroblunt:

Actually, US Government does not lie about any statistics. Every change & methodology is documented. There are tons of footnotes for you to read and understand how they derive their numbers.

I'm hoping this is sarcasm...
If not then can you please get me some recent M3 data?

 

[Cutten]

Inflation-protected bonds rely on the trustworthiness of whichever body calculates the inflation rate.

If the government both issues the bonds, and decides the inflation rate, then that's what you might call a conflict of interest. Any CEO doing that would be sent to jail. But in the public sector, it's just business as usual.

 

[flyingiguana]

Quote from 50_Bip:

Bonds are a sucker's bet anyway.. Why risk $100 to earn $5 to $10 per year?

if a bond is too risky, wait for prices to drop for a higher yield