Every week Max Keiser looks at all the scandals behind the financial news headlines. This week, Max Keiser and co-host Stacy Herbert look at sad Santa stories and bailout largess for the politicall…
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10 Responses to “Keiser Report â6: Markets! Finance! Scandal!”
“averageworkinggal” does not even understand the basics of derivatives or of bonds, all she is doing is digging herself a deeper hole.First of all an IRS is an interest rate swap not the internal revenue service.Second of all bond prices and yields have an inverse relationship, that is a fact.Third, it is impossible for banks like BOA to actually own $50 trillion worth of hedged IRS with treasuries as a reference as that exceeds the entire treasury market multiple times over.
Fourth, the primary reason that treasuries are being bought now is due to the fact that foreigners and institutions are swapping their worthless MBS and toxic debts for slightly less toxic treasuries.Fifth, the so-called profit made by the Fed was outweighed by the fact that the Fed used mark-fantasy accounting rules, and continues to purchase hundreds of billions of dollars in worthless debts nonstop. That directly devalues the dollar.I could go on and on and on, ladies and gentlemen..
First of all you thought that an IRS was a tax revenue collection agency. No that is totally wrong, you can’t understand the context of the greater bond market, obviously.Then you thought that demand was rising incredibly for US Treasuries. No that is also wrong. Treasury prices have been falling. The Treasuries that are being purchased are due to foreigners swapping their MBS for Treasuries.There are so many other ways in which you are wrong, it is self-evident.
So you’re telling me that JP Morgan actually owns $60 trillion worth of bonds. That is impossible.Interest rate swaps create an artificial demand. You clearly cannot grasp this very very basic concept regarding derivatives.
@faller666 – you’re wrong about the yield curve and wrong about bonds.If the yield curve was inversely proportional to the interest rate, then the yield curve would have a negative slope from near to long term as interest rates rise and in fact it’s the opposite, it has a positive slope, increasing with interest rates.Also, as bonds deflate, so does the balance sheet, which means capital destruction, which means deflating money stock, which means boosted dollar.
Yields have been rising since december 2008, bond prices have been falling.That is the definition of inverse.You clearly do not even understand what is occurring right now in the bond market.No if bond prices deflate, you will see what is happening in greece, rates would soar and the currency will be brought down. That is basic fact. You still cannot explain why greek sovereign debt has rising yields, it is called default risk.
That would mean that the dollar would deflate against commodities and other currencies.You do not understand the foreign exchange market. Net dollar assets outstanding would decrease so less support to the dollar would actually be given, I’ve already should you how over the last two years about 100 trillion has been brought into the IRS market alone. That is practically accounting for the total increase of derivatives in the market over that time period.
Global Warming is a fraud you moron FUCK You jew
“averageworkinggal” does not even understand the basics of derivatives or of bonds, all she is doing is digging herself a deeper hole.First of all an IRS is an interest rate swap not the internal revenue service.Second of all bond prices and yields have an inverse relationship, that is a fact.Third, it is impossible for banks like BOA to actually own $50 trillion worth of hedged IRS with treasuries as a reference as that exceeds the entire treasury market multiple times over.
Fourth, the primary reason that treasuries are being bought now is due to the fact that foreigners and institutions are swapping their worthless MBS and toxic debts for slightly less toxic treasuries.Fifth, the so-called profit made by the Fed was outweighed by the fact that the Fed used mark-fantasy accounting rules, and continues to purchase hundreds of billions of dollars in worthless debts nonstop. That directly devalues the dollar.I could go on and on and on, ladies and gentlemen..
First of all you thought that an IRS was a tax revenue collection agency. No that is totally wrong, you can’t understand the context of the greater bond market, obviously.Then you thought that demand was rising incredibly for US Treasuries. No that is also wrong. Treasury prices have been falling. The Treasuries that are being purchased are due to foreigners swapping their MBS for Treasuries.There are so many other ways in which you are wrong, it is self-evident.
@faller666 – the bond market is propped up by investor demand.
So you’re telling me that JP Morgan actually owns $60 trillion worth of bonds. That is impossible.Interest rate swaps create an artificial demand. You clearly cannot grasp this very very basic concept regarding derivatives.
@faller666 – you’re wrong about the yield curve and wrong about bonds.If the yield curve was inversely proportional to the interest rate, then the yield curve would have a negative slope from near to long term as interest rates rise and in fact it’s the opposite, it has a positive slope, increasing with interest rates.Also, as bonds deflate, so does the balance sheet, which means capital destruction, which means deflating money stock, which means boosted dollar.
Yields have been rising since december 2008, bond prices have been falling.That is the definition of inverse.You clearly do not even understand what is occurring right now in the bond market.No if bond prices deflate, you will see what is happening in greece, rates would soar and the currency will be brought down. That is basic fact. You still cannot explain why greek sovereign debt has rising yields, it is called default risk.
@reiser666 – If the “prices” of existing Treasury bonds collapse, that’s deflation and the dollar will be boosted by the destruction of capital.
That would mean that the dollar would deflate against commodities and other currencies.You do not understand the foreign exchange market. Net dollar assets outstanding would decrease so less support to the dollar would actually be given, I’ve already should you how over the last two years about 100 trillion has been brought into the IRS market alone. That is practically accounting for the total increase of derivatives in the market over that time period.