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Gross: Bond Market Is A "supernova That Will Explode One Day"

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In simple terms does this mean they're selling debt at such a low price, when the market turns and they sell debt at a much greater price people holding these bonds at the lower price will be wiped out?

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In simple terms does this mean they're selling debt at such a low price, when the market turns and they sell debt at a much greater price people holding these bonds at the lower price will be wiped out?

Yield = low = price = high = demand* = high.

Thats my basic understanding of it and not a google in sight !!

* Of course lots of this is not actual demand its made up funny money from central banks of course.

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Well they can always hold the bonds to maturity. Surely only a default can wipe someone out by anything other than choice. But then if rolling debt becomes too expensive and repaying debt impossible, that's what's going to happen to some degree isn't it.

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Well they can always hold the bonds to maturity. Surely only a default can wipe someone out by anything other than choice. But then if rolling debt becomes too expensive and repaying debt impossible, that's what's going to happen to some degree isn't it.

Government debt is the biggie ? Once the likes of Venezuela, Greece and other places decide to ram it and just default, and then look to be in a much better position a few years later - the whole thing could come crashing down.

Who knows.

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Too funny. Gross has been 100% wrong on US Ts for 3 years. As he's consistently said rates/yields will imminently soar, they've continued to trend down. He's the 2nd last person to listen to on govt bonds

The last person is RK whose accuracy has been severely lacking on this and many other assets, on which he's forecasted.

Edited by Killer Bunny

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Too funny. Gross has been 100% wrong on US Ts for 3 years. As he's consistently said rates/yields will imminently soar, they've continued to trend down. He's the 2nd last person to listen to on govt bonds

The last person is RK who's accuracy has been severely lacking on this and many other assets, on which he's forecasted.

As long as every government has the same debt problem, no one is going to rock the boat.

Govt create bonds, sell them in the market, create magic money to buy them back from banks(so they take a commission). Banks now have funny money to speculate and lend on assets, buy more bonds and sell them back to the ECB/Govt

We are borrowing forward until something else turns up...as always. If the turnstile fails we have a huge problem in the monetary system. The government will re-write the rules to make sure they aren't bankrupt and some people who guessed what the govt will do will probably profit.

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Is it a champagne supernova?

they should make the most of it then, because all they will drive afterwards is a clapped out vauxhall nova.

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Surely the definition of a supernova is a massive star that has suffered runaway gravitational collapse followed by a massive explosion

If nothing else Gross is mangling the metaphors here

He should stick to 5 inch hooker heels on which he appears to be an expert

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Too funny. Gross has been 100% wrong on US Ts for 3 years. As he's consistently said rates/yields will imminently soar, they've continued to trend down. He's the 2nd last person to listen to on govt bonds

The last person is RK whose accuracy has been severely lacking on this and many other assets, on which he's forecasted.

hes over $1 billion wealthier than you.

Id say that p1sses on your bond market "expertise".

Which calls of mine have been wrong? Link them up Killer Troll.

gold - nailed it

Silver - nailed it.

Oil - nailed it

Equities - nailed it

houses - nailed it.

Bonds - There IS no exit. You are the greater fool.

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hes over $1 billion wealthier than you.

Id say that p1sses on your bond market "expertise".

Which calls of mine have been wrong? Link them up Killer Troll.

gold - nailed it

Silver - nailed it.

Oil - nailed it

Equities - nailed it

houses - nailed it.

Bonds - There IS no exit. You are the greater fool.

Mr FTSE 10000. Foolproof and incapable of error. :lol:

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Mr FTSE 10000. Foolproof and incapable of error. :lol:

You said it.

And there's a lot more that can be added - which I have done. Can't be bothered doing it yet again.

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hes over $1 billion wealthier than you.

Id say that p1sses on your bond market "expertise".

Which calls of mine have been wrong? Link them up Killer Troll.

gold - nailed it

Silver - nailed it.

Oil - nailed it

Equities - nailed it

houses - nailed it.

Bonds - There IS no exit. You are the greater fool.

I'm going to open a special RK portfolio, to see how your guesses really do over the long term. I'm willing to put a couple a k in there. So, which share/ETF/etc should I buy first oh great one?

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Too funny. Gross has been 100% wrong on US Ts for 3 years. As he's consistently said rates/yields will imminently soar, they've continued to trend down. He's the 2nd last person to listen to on govt bonds

The last person is RK whose accuracy has been severely lacking on this and many other assets, on which he's forecasted.

To be fair to RK his winners are worth following.

To be fair to Gross he had made a lot of people a lot of money

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I'm going to open a special RK portfolio, to see how your guesses really do over the long term. I'm willing to put a couple a k in there. So, which share/ETF/etc should I buy first oh great one?

Put it in the portfolio he said before it happened.

...and it's gone.

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To be fair to RK his winners are worth following.

To be fair to Gross he had made a lot of people a lot of money

Name them. Timestamped.

Not in last 3 years. Hence he was thrown out of PIMCO that he founded.

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I think the outcome for bonds/government borrowing will be less bonds collapsing but countries being able to borrow in their own currencies.

There's few creditors out there. The tales of glut of money is wrong. Even Saudi is raising money via bonds.

Thee's finite cash chasing almost infinite debt.

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I reckon Bill Gross is ready to explode, and will do long before the bond market does.

Coke raddled BS merchant - Gross that is, not you.

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Name them. Timestamped.

Not in last 3 years. Hence he was thrown out of PIMCO that he founded.

Over thirty years people who stuck with him are still up handsomely.

It's a result most people would take.

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