Quote from nazzdack:
1) The FED is the buyer of "last resort". If ever they don't want bonds, be careful of the downside. :eek:
2) Buy the rumor, sell the fact. :eek:
3) The decline can be indicative of pending deflation. There will be no "safe harbors" nor "flight to quality" because everything will have turned into garbage, even gold. :eek:
4) The FED can appear to be "competent" during bull markets but bear markets show them to quite the opposite.[/QUOTE
"The decline can be indicative of pending deflation. "
ridiculous remark. if i remember correctly this is not the 1st time you have posted this nonsense. a drop in bond prices is an indication of an uptick in inflation not deflation.
Why did bonds fall when fed bought during QE?
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1) That is "partially true" as long as the credit quality does not deteriorate......which can bring about an enormous "deflation" of value/price.
2) You "economists", who are obsessed with inflation, and explain everything via "supply and demand", in hindsight, are amusing and annoying.
If you think of Bernanke as a quant, QE and printing money makes alot more sense.