iShares Lehman 7-10 Year Treasury (IEF)

All Comments on IEF

  • commenter
    Sep 29 12:58 PM
    My Website
    Short Cut to Profits? A Closer Look at Inverse Funds [view article]
    Your point #6 is factually incorrect. No interest is paid on a short sale. The sale takes place in a margin account and the short SALE generates a free credit in the account. Generally the broker will credit the short selling customer with somewhere from 50% to 70% of the interest earned on the free credit, subject to negotiation based on account size, trading frequency etc. Reply
  • commenter
    Sep 26 08:11 AM
    My Website
    Asset Class Investing: A Strategy For Both Bull and Bear Markets [view article]
    Check out this article on Harvard-Yale style multi-asset investing

    All-weather portfolio: how Harvard and Yale invest for bad times

    (Click the Website link to the left.)
    Reply
  • Pimco's Bill Gross: Bailout Plan Benefits Main Street [view article]
    There are three thousand community banks that are capital starved or near capital starved.

    When Wall Street absorbs the $700 billion, Main Street banks will pay dearly to maintain their capital ratios.

    It makes more sense to distribute the $700 billion to American community banks so they can lend for local transactions or use it to recapitalize Wall Street.
    Reply
  • commenter
    Sep 25 11:41 AM
    My Website
    Pimco's Bill Gross: Bailout Plan Benefits Main Street [view article]
    The problem is: They won't find that 700B money who wants to buy T bond at 3 or 4%. Japs? Chinese? Arabs? They will walk away.
    If the Treasury can't bring foreign dollars back into America, this plan will be USELESS!
    Reply
  • commenter
    Sep 25 10:51 AM
    Pimco's Bill Gross: Bailout Plan Benefits Main Street [view article]
    Makes excellent sense to me. As for his offer of free service intelligence, so long as it is complemented with appropriate oversight, it sounds like a good offer. Reply
  • commenter
    Sep 25 09:28 AM
    Pimco's Bill Gross: Bailout Plan Benefits Main Street [view article]
    You'd think that the vast amounts of money sitting on the sidelines would jump at such a great opportunity. How much did Pimco make again on the Fannie Freddie Bail out -- was it $6B or was it $7B - I guess one good philanthropic turn deserves another -

    With the announcement of the Fannie bail out Gross stated that the Category 4 financial storm had been downgraded to a Tropical Storm -- what a difference a week makes...
    Reply
  • commenter
    Sep 24 10:23 AM
    Feddie Pay: The Reality of the Bailout World [view article]
    madasiwannabe- you have it correct however the man is so protected by his new position that no one will do anything to stop his mass destruction and his mass paycheck for doing what he has done. Reply
  • commenter
    Sep 23 07:35 PM
    Global Long Term Interest Rates [view article]
    Yes, rates are low for what we see nominally. Why would that be the case? Worth answering, if you are an investor. One answer might be that money lenders do not expect much from the marketplace. Maybe a recession, or more? Keeping ones loanable funds invested takes both price and due diligence. Reply
  • commenter
    Sep 23 04:56 PM
    Resolution Trust Corp vs. Troubled Asset Relief Program [view article]
    Sheila Bair, Chairman of FDIC said that there is no need for a bailout. FDIC handled Indymac and others. They are ready to handle more. They hardly miss a beat when they take over a bank. They are much quicker and more cost effective than the Paulson plan.

    Even if the Bailout Express cannot be stopped, the CARE PACKAGE should be on the basis of loans, not gifts. These loans could be available to all banks at 8% interest. The loans should have priority over all existing bonds.

    Paulson says we must act quickly. It is much quicker to make loans on a standardized basis than to negotiate with thousands of institutions for assets that cannot be accurately valued. Valuations might be politically valued, rather than objectively.

    Banks can reliquify the rest of the economy.

    Under this approach much less money should be required. The
    government should get back almost all of its investment plus interest.

    Confidence will be restored.

    The Paulson approach would be slower. Even if it restores confidence, this would be temporary.

    As the dollar loses value and doubts about the creditworthiness of the U. S. increase, our ability to finance escalating deficits will be impaired.

    If you calculate the dollar's most recent loss in value multiplied by the number of dollars outstanding, this alone may amount amount to a cost of more than $700 billion, and will escalate under the Paulson plan.

    There is no guarantee that we will be able to finance government debt for much longer.

    A more radical and even faster approach would would be to temporarily reduce bank capital requirements slightly with appropriate conditions.

    The Paulson plan is 1000 times as radical, more than 1000 times as costly, and slower.

    Paulson says that not all of the $700 billion will be lost. If we get back 20% of The $700 billion and spend 10% for administration, we will lose $630 billion in addition to the more staggering indirect costs.
    Reply
  • commenter
    Sep 23 02:25 PM
    Feddie Pay: The Reality of the Bailout World [view article]
    To encourage people to be responsible, we should have tax penalty and special points for future loans on load defaulters and tax incentive to people who keep their mortgages, to those who take on new mortgages, and to those who increase their mortgages, similar to tax on big cars and incentives for small/hybrid cars. Please spread this if you agree so that the politicians will do something. Reply
  • commenter
    Sep 22 07:39 PM
    Feddie Pay: The Reality of the Bailout World [view article]
    It was on Greenspans watch that all the bad decisions were made. You mentioned increased ratios, but no one is talking about the Fed lowering capital requirements for the banks and OFEHO lowering capital requirements and increasing portfolio limits for the GSE's. All of this just to make sure there was enough liquidity in the market to keep the housing boom rolling.

    Greenspan should go to jail, not just for his role in setting up our current crisis while at the Fed, but his role in toppling the market while on the payroll of the two guys that made the most from it, Bill Gross and Bill Ackman.
    Reply
  • commenter
    Sep 22 03:51 PM
    Feddie Pay: The Reality of the Bailout World [view article]
    A well thought out analysis. I'm not so sure the deflation won't occur but the actions of the markets today make it more likely down the road than immediately. It doesn't look like it will be a fun party. Reply
  • commenter
    Sep 22 03:22 PM
    Feddie Pay: The Reality of the Bailout World [view article]
    Feddie Pay. I like that - LOL! Reply
  • commenter
    Sep 22 02:39 PM
    Feddie Pay: The Reality of the Bailout World [view article]
    What will happen to FRE and FNM in the next quarter or so? Why has there been a spike today? Reply
  • commenter
    Sep 18 09:26 AM
    U.S. Records Another Huge Current Account Deficit [view article]
    Rabble,
    China is a polluted prison filled with illiterate peasants trading their miserable agrarian subsistence for a slightly less miserable (but still Dickensian) 'life' on an assembly line on the coast.
    PJ O'Rourke paraphrase on Purchasing Power Parity: saying the Chinese quality of life is in any way gaining on ours is like saying you can have a better house in a crime-ridden, crack district. Yes, it's a better house, but most folks would not choose it.

    I think you over-estimate internal Chinese demand for 99% of their population. The rich 1% want to buy anything but tainted food, counterfeit brake pads, soy sauce made from hair, etc,
    Reply