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|Subject: Re: Howard: Your Maturities?||Date: 10/2/2012 11:39 AM|
|Author: trader2012||Number: 34431 of 35561|
It seems to me that most investments are benefiting from current low rates. Financial asset prices are being bid up and well-capitalized corporations are able to refinance debt at much lower costs. Interest expense saving fall straight to the bottom line. Lower rates also help bond defaults rates stay under control. This is helping fuel the stock and bond market rallies.
I agree. Anything already owned is paying off hugely. My one-day change of value from Friday's close to Monday's close was a whopping 78 basis points. Most of that was coupons being posted to my accounts. But that kind of change of value is huge for a bond account. Since Bernanke announced QE Infinity, I've been averaging gains of 11 bps/day, which is also huge. That man is making me rich.
But, also, he is making me worried. None of this can end well. I'd much rather that this country have done what it should have done in 2008, namely, let the banks fail. We'd be well on the road to recovery by now instead of having to deal with the bigger mess that's coming for having delayed dealing with it. Stockman, Mauldin, Schiff, and Celente don't have it all wrong. This country is bankrupt, and the current, debt-fueled prosperity is foolishness that will beggar us all.
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