iShares Lehman TIPS Bond (TIP)

All Comments on TIP

  • commenter
    BondGuy
    Oct 08 04:11 PM
    New Treasury Supply: Did It Already Cost Taxpayers $240 Million Today? [view article]
    @ Smarty
    If excess money creation is the fear, why did the 10 year TIPS under-perform? Please try to make sense. As Jansen explains, this is just too much supply for the market to absorb on one hour notice. End of story.     Reply
  • commenter
    Owen
    Oct 08 03:51 PM
    New Treasury Supply: Did It Already Cost Taxpayers $240 Million Today? [view article]
    Here we go again. As long as the US government can issue securities denominated in US dollars, it cannot default, period.

    Inflation may rise, along with bond yields, but we're not seeing any sign of that now. In fact, investors are climbing over each other to lend money to the US government at 4.1% for 30 years! A dramatic 200 basis point rise in long rates would only bring us to the long-term average. But of course, who wants to listen to reason these days. Unless you predict the imminent demise of western civilization, everyone accuses you of being a dreamer.

    Here's a thought: stop whining and short some Treasuries if you're so sure of yourself.


    On Oct 08 03:31 PM westwest888 wrote:

    > You make a very good point. This bond issue had to compensate buyers
    > an extra 40 basis points or it would have failed. This will ramp
    > the cost of rolling over all existing US debt (11 trillion) which
    > has an average maturity of 3 years. That increases the interest
    > portion of the Congressional budget and inches us closer to the end
    > game - DEFAULT.     Reply
  • commenter
    westwest888
    Oct 08 03:31 PM
    New Treasury Supply: Did It Already Cost Taxpayers $240 Million Today? [view article]
    You make a very good point. This bond issue had to compensate buyers an extra 40 basis points or it would have failed. This will ramp the cost of rolling over all existing US debt (11 trillion) which has an average maturity of 3 years. That increases the interest portion of the Congressional budget and inches us closer to the end game - DEFAULT. Reply
  • commenter
    Smarty_Pants
    Oct 08 02:44 PM
    My Website
    New Treasury Supply: Did It Already Cost Taxpayers $240 Million Today? [view article]
    Even with the unprecedented tail the buyers probably got the short end of the stick.

    By the time those bonds mature their purchasing power will have declined a great deal more than the $240 million they 'saved' in the purchase.

    It's a wonder that anybody is willing to buy them at prevailing rates when the FED is creating gobs of money daily.     Reply
  • commenter
    Owen
    Oct 08 02:29 PM
    New Treasury Supply: Did It Already Cost Taxpayers $240 Million Today? [view article]
    The US Federal budget is $3 Trillion a year. This works out to $8.2 billion a day, or $340 million an hour. During the time it took you to write this article, the government spent more than the $240 million you write about. So yes, today the government spent $8.4 billion instead of $8.2 billion. Wow! Yawn.

    It's easy to scare people with seemingly big numbers, but I'm amazed how a self-appointed 'bond expert' has no sense of scale. Last month you said the $85B AIG buyout will require the largest funds raising in the world's history. Anyone in the bond industry knows the US raises more than that each month, and has done so for decades. Basic numeracy is a key requirement for a financial analyst.
     Reply
  • commenter
    short WFC
    Oct 08 12:34 PM
    Investment Ideas For Hard Times To Come [view article]
    without tough accountability built into legislation -capitalist or (spit sideways) socialist, its very hard to prevent the legislation from being sooner or later abused and end up counterprductive. whats missing is not just the right philosophy but realism to provide strict accountability built into the laws so that whoever is charged with implementation has to make it work the way it was intended or else the blaim and severe repercussions are automatic. in other words in a good system the top management of FNM etc should have all resigned citing the impossibility of juggling subprime with safe banking Reply
  • commenter
    longtermstoc
    ks
    Oct 08 09:27 AM
    My Website
    Investment Ideas For Hard Times To Come [view article]
    Nice article thanks. Reply
  • commenter
    Socialism
    cannot
    compete!
    Oct 07 05:23 PM
    Global Market Roundup: Will the Bailout Work? [view article]
    @Bill James: grammar check, please!

    @Shiv: "take time to work its magic"?? There is no magic to it. And it will not work. That was a scam, a farce...it serves only the banks and to further indenture the people, by handing over yet more control to the government. The real solution? Massive cuts to government and massive TAX CUTS. I'm not talking 5% or even 10%. I'm talking, cut the federal government to the core, and a flat tax never to exceed 10% on *anyone*. That is just...and it's overdue. Sooner or later enough people will wake up and demand it. This economic situation may just be the time that it happens. Hopefully!!     Reply
  • commenter
    piedra.j
    Oct 07 04:11 PM
    CPFF, TAF, TARP, Bailouts and All That Jazz [view article]
    The incremental approach is not working - They really need to come in with force and in a coordinated manner.

    There is ineptitude in both sides of the Atlantic.

    It is interesting to notice how the super-bullish Levkovich is not bmost bearish according to an article in Bloomberg. I guess ineptitude is not a public servant-only attribute.     Reply
  • commenter
    Smarty_Pants
    Oct 07 03:28 PM
    My Website
    CPFF, TAF, TARP, Bailouts and All That Jazz [view article]
    WHAT!?! Making it up as they go along? Say it isn't so.

    Bernanke and Paulson have everything under control. Soon Paulson will whip out his personal checkbook and save the day by bailing out the FED.     Reply
  • commenter
    mnrtrading
    Oct 07 02:56 PM
    My Website
    CPFF, TAF, TARP, Bailouts and All That Jazz [view article]
    Note that when credit contracts r becomes negative. Reply
  • commenter
    mnrtrading
    Oct 07 02:53 PM
    My Website
    CPFF, TAF, TARP, Bailouts and All That Jazz [view article]
    Back of the envelope calculation (the basis of capitalism) assume that: economic growth = M + rG where M is available liquid capital for investment, G is inherent economic demand for goods and services, and r is a coefficient determined empirically (but is inversely related to the cost of credit). A the cost of credit increases r gets smaller (it is certainly less than 1 now). The most important factor in this equation is r. So, as simply as one can express this situation, it means we are deflating rapidly, and will continue until credit EFFECTIVELY cheapens considerably. Reply
  • commenter
    searcher
    Oct 07 12:23 PM
    Investment Ideas For Hard Times To Come [view article]
    Socialism - Capitalism etc. - 'ism vs. 'ism ad naseum. Human institutions are just that and have always been subject to fear and greed, jealousy and envy, hubris and mendacity, etc. All characteristics inherent to the human condition. The point? No 'ism is going to save you from yourself. Reply
  • commenter
    MachineGhost
    Oct 07 12:01 PM
    Tactical Asset Allocation, Part I [view article]
    Vernl, downside risk only measures the standard deviation below the mean. In the real world, a loss is a peak-to-trough drawdown, so standard deviation is inherently superior as it is the probability weighted maximum point above the mean to the minimum point below the mean. If the maximum historical drawdown is what one is worried about, then a simple heuristic ( 1 / maximum drawdown in % ) can be used to allocate.
    Reply
  • commenter
    myinvestorsp
    lace
    Oct 07 03:24 AM
    My Website
    Investment Ideas For Hard Times To Come [view article]
    One investment idea for small investors is stocks. Now this may come as a surprise since most people think you need to have scads of money to get involved with the stock market.Stocks are influenced by several different factors.

    MyInvestorsPlace - trading, value, investing, forex, stock, market, technical, analysis,
    systems     Reply
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