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Author: susan400 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35400  
Subject: principles or principal Date: 7/29/2003 11:18 AM
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winter 2000, uninformed stock investors lived in bliss,

the informed lived uneasy very uneasy, they knew you can't take down 15-20% in a 3%4% growing economy, the crap wpuld hit the fan eventually,,

which is actually cheerful ,

because it would create the set up to move prices to where stks could be bot again.

Spring 2003, a large $ of bond investors lived in bliss, thy have racked up HUge gains for 3 yrs.

others, a small small number don't see bliss , they see the unsustainable.....

relative to the risk people think they are taking I think the bond bubble is more dangerous.

the owner of a 10 yr tnote of just 7 weeks ago, is down more than the coupon will earn in 36 months.

and he barely knows it.

"don't forgive then for they know not what they do " you should know or you shouldn't b investing.

"its 10PM do you know where your principal is ? bigger Q, do you know where your principles are..."

across the board the public is clueless, more so than in 2000 and stks.

In 1980 i had investors buy 12% paper that went to 15, they were down 15 points, but at least they were taking in a 12% coupon.

here ? 3% etc.

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Author: missash Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 8019 of 35400
Subject: Re: principles or principal Date: 7/29/2003 11:30 AM
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, <<<but at least they were taking in a 12% coupon.>>> some of them are still, with another 7 years to go; hmm, a pretty good investment in 1980



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Author: splotto Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 8020 of 35400
Subject: Re: principles or principal Date: 7/29/2003 11:35 AM
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<<<but at least they were taking in a 12% coupon.>>> some of them are still, with another 7 years to go; hmm, a pretty good investment in 1980


Ahhhh. The good old days.

Bring back the days when mortgages (and bonds) yielded more then your credit cards charged.

Splotto


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Author: goodald Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 8021 of 35400
Subject: Re: principles or principal Date: 7/29/2003 11:47 AM
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"Bring back the days when mortgages (and bonds) yielded more then your credit cards charged."

I was too little to care back then, but were credit card rates higher then as well?


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Author: splotto Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 8022 of 35400
Subject: Re: principles or principal Date: 7/29/2003 11:56 AM
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I was too little to care back then, but were credit card rates higher then as well?

Probably. I was just having some fun because a guy I work with was talking about how his first mortgage was something like 18%.

Splotto


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Author: Lokicious Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 8023 of 35400
Subject: Re: principles or principal Date: 7/29/2003 12:22 PM
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I think you'll find that at any given time the interest rate paid by borrowers will always exceed the rate paid to savers. Of course, if you're lucky enough to be sitting on something yielding more than it currently costs to borrow, you'd be stupid to cash that in to cover buying something for which you would otherwise need a loan.

Our first mortgage was something like 11.5%, and we were happy to refinance a year later for about 1.5%. And, yes, we did pay off the house as quickly as we could, and are glad forit.

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Author: rpb Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 8027 of 35400
Subject: Re: principles or principal Date: 7/29/2003 2:35 PM
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"its 10PM do you know where your principal is ? bigger Q, do you know where your principles are..."

What time zone are you in?


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Author: susan400 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 8034 of 35400
Subject: Re: principles or principal Date: 7/29/2003 11:01 PM
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the 30 yr is down 16 points since 7 weeks ago.

time zone?

where does the bond market dwell?

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Author: Sonnet Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 8036 of 35400
Subject: Re: principles or principal Date: 7/29/2003 11:52 PM
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I'm just waiting a while to open my Treasury note ladder. Maybe in a few more months when the 10 year hits 10%.



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