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  • For Safety, Two Income Securities [View article]
    Actually most numbers suggest money supply has been contracting over the last month or two as the Fed has shrunk its b/s a bit - largely through a reduction in liquidity swaps but also by retreating from the CP market.

    www.federalreserve.gov.../

    This site attempts to recreate M3 measurements and it also shows a contraction.

    www.nowandfutures.com/...


    On Mar 09 11:39 AM bearfund wrote:

    > You MUST pair any intermediate bond holdings with PST or a direct
    > short position in similar-duration Treasuries. The explosive expansion
    > of the money supply and the risk of a hyperinflationary recovery
    > are too great to take on that kind of duration without a hedge.
    > But BIV holds a lot of Treasuries and Agencies, so you're better
    > off with corporate-only bond funds that will reduce the cost of your
    > hedge. Not to mention the fact that Treasuries are in a bubble of
    > epic proportions.
    Mar 09 12:10 pm |Rating: +1 0 |Link to Comment
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