texpat

Could Investors Be Wrong (Again) About Treasury Bonds (TLT)?

Before he became Fed chairman, Bernanke was already on record as favoring turning up the printing presses to prevent deflation (what became called the "helicopter drop"). And the Fed is currently talking about QE to buy Treasury debt. Do you think that all of this is misdirection or that they're going to have a sudden change of heart?

On Jun 23 07:07 AM logicalthought wrote:

> if the Fed monetizes the debt instead, rates will soar due to inflationary
> fears (which is why I think the Fed won't do it). Thus, I think we'll
> see what is perhaps the worst of all economic worlds: high rates
> combined with DE-flation, an environment in which cash will truly
> be king.