On Sat, 03 Dec 2011 00:32:01 -0700, Canuck57
wrote:

On 02/12/2011 7:11 PM, bpuharic wrote:
On Sat, 3 Dec 2011 02:01:09 GMT, "Haywood Jablomie"
wrote:



our RATES ARE LOW PRECISELY BECAUSE DEMAND IS HIGH!!

DUH!!!

christ. what the **** happened to conservatives who dont even know how
to count to FIVE???

Rates are not low because demand is high.

Rates are low because US Fed lends out at 0%.

so he starts out by saying rates are low because...

they're low!!! who knew!!

Banks don't need to pay
interest to savers if they can get free money. There is no balance in
the lend-borrow market place.

uh no. if they HAD to lend at a higher rate to attract buyers they
would. you see, that's how it works. you buy a bond because of the
rates. if one bond is selling at 1% and another at 5% which would YOU
buy??

oh. you're right wing. you dont know 5% is more than 1%. i forgot
about that.

and why are t bills at 1%? because they attract buyers at that rate,
vs the 5% of spanish and italian bonds.

and why are t bills selling at 1%? because people perceive them to be
more secure than spanish or italian bonds.

christ you're an idiot.


And how if ****s you? Social security gets maybe 1% on the money it
lends to government. 6% is real unadjusted inflation. So in fact
Social Security loses 5% value per year.

uh huh. 6% inflation? golly. where?

oh. in 1986. i forgot, again. you right wingers are 25 years in the
past.


Worse of t-bill holders using real money. You lend $1000 and get 1%,
$10. But it takes $1060 to buy he same stuff a year later. But wait,
you have to pay tax on the $10. So in fact you lose more than 5%.

and yet you could get FIVE percent by buying SPANISH debt

but no one is. why?

because US t bills are MORE SECURE than spanish bonds are

compared to youi, a bag of rocks is einstein