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  • The Small, But Important, Flaw In The Tepper Analysis  [View article]
    First, who said the Fed was actually going to sell treasuries? They haven't announced an exit strategy. In fact, it has just been reported that they have begun to plan an exit strategy to their PURCHASES, selling isn't in the picture yet. Also, IF they do in fact sell, the magnitude is measurable ( they own some ~$3T of government debt).

    Finally,shame on you for referring to legend Bill Gross as foolish. Obviously he understands their are other participants in the bond , market. What's important is that the Fed owns 70% of treasuries with maturities of +10 years -- a fairly significant amount of the overall demand, no?
    May 15, 2013. 09:58 AM | 5 Likes Like |Link to Comment
  • The Wedge Between Perception And Reality  [View article]
    I agree with just about this entire article with two comments:
    1) I'd argue that companies have already made conscious efforts to become more efficient and/or never took the 'risk-on' appetite (R&D, hiring, etc) after '08. If you just look at EPS, this earnings season hasn't been too bad. It has been revenue and guidance disappointing.

    2) If Bernanke is waiting for LT yields to rise to scale back purchases, that's a confirmation QE is an eternal operation. The Fed owns +70% of US treasuries with at least 10 years maturity. How much can yield rise when 70% of demand is guaranteed? That isn't even considering possible BOJ purchases of US treasuries.
    May 6, 2013. 12:45 AM | 1 Like Like |Link to Comment
  • Mediocre Economic Growth Continues: Going Nowhere Fast  [View article]
    In regards to the underemployment, maybe it's the people defining themself as underemplyed that is the problem. As a student attending a large and reputable university, I witness everyday that "going to college" isn't all that it is cracked up to be.I know plenty of kids that cheat their way through tought classes and even more who study bull s*** majors just to get a bachelor's degree.
    What job can someone get with a 4-year degree in psych? or hotel and park management? or communications art science?
    Times have changed, there are an influx of college degrees, it isn't enough to have one, you need to actually learn something for the $100k you pay to attend. The cashiers who consider themselves underemployed because they studied history at XYZ aren't underemployed, they're the beginning of the student loan bubble. What's more subprime lending than giving some KID $100k to buy an 'education' which will land him/her a job that anyone with two eyes a nose and a mouth can get? This is a structural problem
    Apr 1, 2013. 05:58 AM | 1 Like Like |Link to Comment