3 Quality Stocks Yielding 8%+, Now Selling at Last Year's Price [View article]
how can you tell in a royalty trust whether you are getting income or a return of capital? isn't there a risk that the "dividend" is over-stated because the corpus of the trust is being depleted?
5.5% Plus Yields on 2010 Treasuries? No Way! [View article]
The Fed is not looking for a political fight at this point. If the Fed were to print $1 trillion of money to buy Treasuries, Trichet would make Ron Paul look like a pussy cat. After all, a trillion here and a trillion there and you are talking about real money.
On Dec 30 03:42 PM Kimball Corson wrote:
> To Geohjr and Others: > > Consider this. There is nothing to prevent the Fed, if it chooses > and as long as banks are not lending so as to create the problem > of inflation, to initiate a $1 or even a $2 trillion dollar buy up > program for 10 and 30 year Treasuries. It just completed a $300 billion > dollar buy up program for longer term Treasuries over about 9 months > which has worked fine to this point. It also controls the Federal > funds rate now pegged at from 0% to .25%. > > The Fed will do something like that, too, albeit more likely on a > lesser and more incremental scale, if it believes interest rates > will rise and damage the recovery, stall the housing sector and increase > unemployment. > > The Fed has almost unlimited muscle in these regards. If banks won't > lend, it can buy as much debt as the US government wants to float, > without a problem of inflation, but it will have to mop up the reserves > or high powered money at some point to avoid later inflation if the > economy really gets going. That can be easily and substantially done, > in a pinch, by just increasing the reserve requirement, say, for > example to 1 to 1.
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Latest comments | Highest rated3 Quality Stocks Yielding 8%+, Now Selling at Last Year's Price [View article]
5.5% Plus Yields on 2010 Treasuries? No Way! [View article]
On Dec 30 03:42 PM Kimball Corson wrote:
> To Geohjr and Others:
>
> Consider this. There is nothing to prevent the Fed, if it chooses
> and as long as banks are not lending so as to create the problem
> of inflation, to initiate a $1 or even a $2 trillion dollar buy up
> program for 10 and 30 year Treasuries. It just completed a $300 billion
> dollar buy up program for longer term Treasuries over about 9 months
> which has worked fine to this point. It also controls the Federal
> funds rate now pegged at from 0% to .25%.
>
> The Fed will do something like that, too, albeit more likely on a
> lesser and more incremental scale, if it believes interest rates
> will rise and damage the recovery, stall the housing sector and increase
> unemployment.
>
> The Fed has almost unlimited muscle in these regards. If banks won't
> lend, it can buy as much debt as the US government wants to float,
> without a problem of inflation, but it will have to mop up the reserves
> or high powered money at some point to avoid later inflation if the
> economy really gets going. That can be easily and substantially done,
> in a pinch, by just increasing the reserve requirement, say, for
> example to 1 to 1.
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