The Fed: Now the World's Largest Private Bank [View article]
On Nov 18 10:26 AM nickgogerty wrote:
> any bets on when the US T-bond at AAA drops to A?
Let's consider a similar example. A house is offered at $500,000 and is actually worth $300,000. There are two ways for this market to repair itself: the seller can reduce his asking price to something close to $300,000, or the value of the dollar can fall by 40%. In either case, the house becomes properly priced and can trade.
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On Nov 18 10:26 AM nickgogerty wrote:
Nov 18 10:48 am
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All Comments by bearfund »The Fed: Now the World's Largest Private Bank [View article]
> any bets on when the US T-bond at AAA drops to A?
Let's consider a similar example. A house is offered at $500,000 and is actually worth $300,000. There are two ways for this market to repair itself: the seller can reduce his asking price to something close to $300,000, or the value of the dollar can fall by 40%. In either case, the house becomes properly priced and can trade.
The analogy here is, of course, the rating.