Magox Posted May 15, 2010 Share Posted May 15, 2010 We demonize the bond vigilantes regularly these days, which led me to wonder what one is exactly. As far as I can tell, it's the boogie man. The man who isn't there. You know, that guy who wouldn't buy your crappy bond at 2%, and wandered off to invest his money elsewhere. The bond vigilante is the guy who doesn't exist, the guy who you think is obligated to lend you money on your terms. I've seen the bond vigilante, and he is you. And I. And every other person who didn't buy Greek bonds this spring. We demonize the vigilantes as if they are actively driving countries to ruin. Seriously, is there a more tangible meaning that I am overlooking? Or is this just a mental creation, a usefull way to explain economics, analogous to the helpfull but misleading way we assign intention and purpose to evolution in Biology? 20 minutes searching on the internet came up with no real definitions. The nerve of those evil, wolfpacking bond vigilantes. How dare they want to protect their assets, silly sons a bitches. Link to comment Share on other sites More sharing options...
Magox Posted May 15, 2010 Share Posted May 15, 2010 I think what happened to the Euro will be a very long term blessing for the greenback. I highly doubt investors will in the medium term switch to any other form of safe investment outside of the T-Bills. The Euro by some was touted by some as being the next main currency for oil etc, but when the going gets tough, they will always run back to the T-Bill. Precious metals my friend, precious metals.... It's the ultimate hard currency, unlike fiat paper money, you can't print more of it, and as the supply of paper money increases so will the value of most other hard assets. Obviously it won't ever attract any where near the sort of funds that T-Bills could, but it's becoming a much more attractive option, and by the time it's all said and done, their will be a frenzy of demand for the yellow metal, and prices in my view will go well beyond what most reasonable thinking people could possibly imagine. Link to comment Share on other sites More sharing options...
/dev/null Posted May 15, 2010 Author Share Posted May 15, 2010 The nerve of those evil, wolfpacking bond vigilantes. How dare they want to protect their assets, silly sons a bitches. To be fair, those wolfpacking bond vigilatnes should protect their assets insofar as they can pay taxes on their value Link to comment Share on other sites More sharing options...
chicot Posted May 15, 2010 Share Posted May 15, 2010 http://www.telegraph.co.uk/expat/expatnews...ut-of-euro.html Okay all Cheese Eating Surrender Monkey jokes aside, the Euro would be doomed if France withdrew. France, UK, and Germany are the bulk of the Euro Zone's financial clout. The UK has never been 100% into the whole Euro thing and with the new Tory government, France's withdrawl might prompt a British withdrawl. Not quite sure what you mean by a British withdrawal? The UK hasn't adopted the Euro - we still have the pound. Link to comment Share on other sites More sharing options...
Clip Smith Posted May 15, 2010 Share Posted May 15, 2010 The nerve of those evil, wolfpacking bond vigilantes. How dare they want to protect their assets, silly sons a bitches. The talk of a Bond Vigilante in a discussion about frenchmen lead me to only one conclusion.....Pu$$y Galore Link to comment Share on other sites More sharing options...
DC Tom Posted May 16, 2010 Share Posted May 16, 2010 Precious metals my friend, precious metals.... It's the ultimate hard currency, unlike fiat paper money, you can't print more of it, and as the supply of paper money increases so will the value of most other hard assets. Obviously it won't ever attract any where near the sort of funds that T-Bills could, but it's becoming a much more attractive option, and by the time it's all said and done, their will be a frenzy of demand for the yellow metal, and prices in my view will go well beyond what most reasonable thinking people could possibly imagine. That's why the smart apocalyptic prophet these days is putting his money in silver... Link to comment Share on other sites More sharing options...
Magox Posted May 17, 2010 Share Posted May 17, 2010 That's why the smart apocalyptic prophet these days is putting his money in silver... This will probably be one bet that he scores big. I read an article regarding the IMF and their outlook on the U.S, and according to them the U.S would have to restructure their debt even more so relatively speaking than Greece. They also weigh in on the Health Reform bill. http://thehill.com/blogs/on-the-money/budg...hing-100-of-gdp The U.S. national debt will soon reach 100% of GDP, the IMF predicts in a new report. The following graph shows the sharp rise in U.S. debt starting in around 2006. By 2015, the IMF suggests, debt could reach well over 100% of GDP. The IMF predicts that the U.S. would need to reduce its structural deficit by the equivalent of 12% of GDP, a much larger portion than any other country analyzed except Japan. Greece, in the midst of a financial crisis, needs to reduce its structural deficit by just 9% of GDP, according to the IMF's analysis. Read the full, very long report here. The report, released yesterday, also wades into the debate over healthcare reform, questioning the CBO's analysis that healthcare reform would reduce the U.S. deficit. "There are some risks to the CBO estimates, however, including that the substantial decrease in Medicare payment rates to health care providers may prove difficult to implement," the report reads. Link to comment Share on other sites More sharing options...
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