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Pimco Cuts Us Treasuries To Zero

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http://www.ft.com/cms/s/0/d7b68a9a-4a7f-11e0-82ab-00144feab49a.html#axzz1G3blMbVx

There's only the retail investors left piling into the bond slaughter.

People here complain about a 16 year property boom. Well the boom in confetti is 30 years long. It's gonna be carnage over the next few years. But always deflation hope to hold onto :D

Pimco cuts US Treasuries holdings to zero

By Dan McCrum and Michael Mackenzie in New York

Published: March 9 2011 19:21 | Last updated: March 9 2011 19:21

Pimco’s $237bn total return fund, managed by Bill Gross, has cut its holdings of US government-related paper to zero for the first time in the history of the firm’s flagship investment vehicle.

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Just saw a very shockingly truthful (even for RT) report on Russia Today, very refreshing from the MSM bull on Sky/BBC. They interviewed a guy from the Daily Bell who said that the US is going to go in to Libya to try and shore up the dollar by ensuring a pro-petro dollar regime emerges from the wreckage. How's that for an informed comment.

When challenged that the US claimed it might intervene for humanitarian reasons, he asked where the US were in Sudan or Zimbabwe?

Anyway, all good stuff, but the US (and most probably us too) will fight the transition to 3rd world with their military might. Still, they're fighting a losing battle, just wish they wouldn't fight it and go with the flow, so I can cash up my gold winnings sooner rather than later ;)

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I suppose this is a sensible short term strategy, with ZIRP and the FED exchanging gov't debt for $ there's probably never been a better time to sell. Especially if the trend moves toward reducing central bank funny money and allowing the wreckage to finally work it's way through the system.

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Too bad everybody overlooks the fact that America is, and will be for the rest of our generation, THE de-facto world superpower. Deal with it.

And if all does go bad, your holdings in any currency won't be worth jack squat, as there simply will be nothing to buy with it.

Yields will go up, wars will become more frequent, and if you listen to sock puppets like Gross you will lose your shirt.

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On Fivelive Money at 5.30 this morning they very quickly mentioned - didn't catch the name - that some hedge fund manager is giving the cash back to his investors because he thinks a second crash is coming and he says he can't go through that again.

Anyone know anything about this?

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http://www.ft.com/cm...l#axzz1G3blMbVx

There's only the retail investors left piling into the bond slaughter.

People here complain about a 16 year property boom. Well the boom in confetti is 30 years long. It's gonna be carnage over the next few years. But always deflation hope to hold onto :D

China can't stop 'cause it's their trade surplus. If they do they're in deep sh1t but the corollary means the US trade deficit will start closing. Isn't that a positive?

FED buying the rest to suppress yields obviously.

So what happens to other asset classes if/when there's an upward dislocation in real rates? Be careful what you wish for :D

Edit: Don't forget Bill Gross is a world class poker player. If you think he's giving you his hand then you're definately the patsy.

Edited by Red Karma

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China can't stop 'cause it's their trade surplus. If they do they're in deep sh1t but the corollary means the US trade deficit will start closing. Isn't that a positive?

FED buying the rest to suppress yields obviously.

So what happens to other asset classes if/when there's an upward dislocation in real rates? Be careful what you wish for :D

Edit: Don't forget Bill Gross is a world class poker player. If you think he's giving you his hand then you're definately the patsy.

Bonds are quite simply the most overpriced asset class in the world. Period.

They have been on the longest bull run of all.

Property bull 16 years long, about to crash.

Equities crashed 11 years ago, nearing the end of its bear market.

Commodities started rising in 2000 from 80 year inflation adjusted lows. Secular bull markets last 15-25 years so will continue rising for 5-15 years more.

Bonds are trash. the pastys are the ones buying fixed income now. The retail investors who pile in right at the peak, euphoric stage, just as the institutions start pulling out.

Edited by ringledman

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On Fivelive Money at 5.30 this morning they very quickly mentioned - didn't catch the name - that some hedge fund manager is giving the cash back to his investors because he thinks a second crash is coming and he says he can't go through that again.

Anyone know anything about this?

Carl Icahn.

http://www.businessi...k-market-2011-3

^^ Beat me to it.

Edited by ZeroSumGame

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http://uk.finance.yahoo.com/news/Brent-jumps-Libya-U-S-reuters_molt-349533491.html?x=0

U.S. Treasuries prices were boosted by a safety bid following the sale of Portuguese debt at unsustainably high yields. Appetite for safe-haven assets also translated into
strong demand in an auction of 10-year Treasuries
..../
Prices of
U.S. government bonds rose as investors moved to safe-haven assets
after an auction of Portuguese debt reminded them of the financial troubles of peripheral euro zone countries.
U.S. benchmark 10-year Treasury notes gained 21/32 in price, with the yield at 3.4675 percent. Prices rose further after the high yield in an auction of $21 billion of reopened 10-year notes came in below market expectations.

If that was Bill at PIMCO--GOO ON MY SON!

Edited by Realistbear

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Bonds are quite simply the most overpriced asset class in the world. Period.

They have been on the longest bull run of all.

Property bull 16 years long, about to crash.

Equities crashed 11 years ago, nearing the end of its bear market.

Commodities started rising in 2000 from 80 year inflation adjusted lows. Secular bull markets last 15-25 years so will continue rising for 5-15 years more.

Bonds are trash. the pastys are the ones buying fixed income now. The retail investors who pile in right at the peak, euphoric stage, just as the institutions start pulling out.

Then you didn't read what he said.

Who’s left? Well, let me not go too far. Temporary voids in demand are not exactly a buyers’ strike. Someone will buy them, and we at PIMCO may even be among them. The question really is at what yield and what are the price repercussions if the adjustments are significant. Fed Vice Chairman Janet Yellen in a speech just last week confirmed the theoretical rationale that Treasury yields are directly linked to the outstanding quantity of longer-term assets in the hands of the public. If that quantity is suddenly increased in one year as the charts imply, what are the yield consequences? What I would point out is that Treasury yields are perhaps 150 basis points or 1½% too low when viewed on a historical context and when compared with expected nominal GDP growth of 5%.

Yields will eventually rise and there may be some dislocation. And?

Bond yields and stock prices are resting on an artificial foundation of QE II credit that may or may not lead to a successful private market handoff and stability in currency and financial markets.

Got it yet?

Where do you think the bond money that's already out has gone? and where do you think it's going to come from when this artificial yield suppression is withdrawn? (Assuming the hand off back to the private sector isn't as smooth as the FED are hoping).

Still not got it? Oh dear..........

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Then you didn't read what he said.

Yields will eventually rise and there may be some dislocation. And?

Got it yet?

Where do you think the bond money that's already out has gone? and where do you think it's going to come from when this artificial yield suppression is withdrawn? (Assuming the hand off back to the private sector isn't as smooth as the FED are hoping).

Still not got it? Oh dear..........

Only a 150 BP too low c'mon someone is having a laugh! Negative yields ahoy.

Problem with running a bond fund is you have to buy bonds.

Ben won't let yields rise coz the US Govt can't afford the repayments.

I presume you mean the Fed sterilising when you say hand back! Which IMO is a myth.

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Anyone else find it a bit disturbing that the FED is basically providing printed money for themselves and the US banks/investors to buy up all world assets. They can just buy up all of the worlds stock markets, default and then say "look at my missile collection, anyone up for a fight".

After buying a house as a real asset for protection (small mortgage), my pension is now all cash in anticipation of another market crash. I get to take the inflation hit whilst waiting and hope that QE3,4,5 doesnt wipe it out completely. At least I will have a roof over my head.

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Anyone else find it a bit disturbing that the FED is basically providing printed money for themselves and the US banks/investors to buy up all world assets. They can just buy up all of the worlds stock markets, default and then say "look at my missile collection, anyone up for a fight".

After buying a house as a real asset for protection (small mortgage), my pension is now all cash in anticipation of another market crash. I get to take the inflation hit whilst waiting and hope that QE3,4,5 doesnt wipe it out completely. At least I will have a roof over my head.

Maybe I am wrong but was it not Andrew Jackson who said having a fed will allow the banks to just issue enough currency to buy everything and rent it back?

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Only a 150 BP too low c'mon someone is having a laugh! Negative yields ahoy.

Problem with running a bond fund is you have to buy bonds.

Ben won't let yields rise coz the US Govt can't afford the repayments.

I presume you mean the Fed sterilising when you say hand back! Which IMO is a myth.

If he won't let yields rise then there isn't a problem is there. Gross is pointing out what might happen if yields normalise in a dislocative manner. We have negative yields now. Are you saying nobody can see that? :blink:

Gross says 'hand back' to the private sector buyers. But look, if they're buying zero now then consider what happens when yields normalise and they buy more than zero. Gross specifically warns equity holders if you read it.

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If he won't let yields rise then there isn't a problem is there. Gross is pointing out what might happen if yields normalise in a dislocative manner. We have negative yields now. Are you saying nobody can see that? :blink:

Gross says 'hand back' to the private sector buyers. But look, if they're buying zero now then consider what happens when yields normalise and they buy more than zero. Gross specifically warns equity holders if you read it.

I was trying to find out what your view was as I infered from your previous post that you knew more than you were letting on, but I am genuinely interested in your different point of view how you see thing playing out.

Its difficult to debate without knowing what the other side actually believes.

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Anyone else find it a bit disturbing that the FED is basically providing printed money for themselves and the US banks/investors to buy up all world assets. They can just buy up all of the worlds stock markets, default and then say "look at my missile collection, anyone up for a fight".

After buying a house as a real asset for protection (small mortgage), my pension is now all cash in anticipation of another market crash. I get to take the inflation hit whilst waiting and hope that QE3,4,5 doesnt wipe it out completely. At least I will have a roof over my head.

Problem with the military stance is if the USD implodes then the US military is going to have a lot of problems filling up its fuel tanks a strong military needs a strong currency.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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