Friday, February 5, 2010

“Deficits are like putting dynamite in the hands of children,”

Taleb Says ‘Every Human’ Should Short U.S. Treasuries

The Fed and U.S. agencies have lent, spent or guaranteed $9.66 trillion to lift the economy from the worst recession since the Great Depression, according to data compiled by Bloomberg. Moody’s Investors Service Inc. said on Feb. 2 that the U.S. government’s Aaa bond rating will come under pressure in the future unless additional measures are taken to reduce budget deficits projected for the next decade.

Posted by depressed @ 02:43 AM (1288 views)
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11 thoughts on ““Deficits are like putting dynamite in the hands of children,”

  • “Democracies can’t handle austerity measures very well,” Taleb added. “We’re going to have a severe problem.”

    wonder why Cameron has back tracked on his cuts

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  • How does a private investor short gilts?

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  • I wonder what the markets will go after next when the full weight of the ecb is placed behind Greece, can anyone think of another little democracy that has been living past their means.

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  • ‘can anyone think of another little democracy that has been living past their means.’

    Doubtful whether the place you refer too could be described as a democracy anymore. Just another illusion i’m afraid, like the economic boom under Brown, and sold to the masses by state media propagandists at the BBC.

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  • 4. chrisa

    Most people think the USA is a (mob rule) democracy. It isn’t, It is a Republic and don’t you forget it! : )

    REVOLUTION…………. DON’T TREAD ON ME. Long live the 2nd amendment.

    A Republic is what ‘made’ America great. Did you like that shippy? LOL

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  • matt – you can short using a spread bet firm. Easy peasy to do, not nec so easy to make some spondoolies…. and no tax.

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  • Surely if “everyone” shorts something price is underpinned by said shorts?

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  • Techie sb’s have an expiry date I think, is there a way to short these say using cfd?

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  • matt – i dont use CFDs but this might help

    http://www.igmarkets.co.uk/cfd/about-cfds.html

    Personally i think holding something for a few weeks is long enough!!. Long Gilt futures trade March / Jun / Sep / Dec. And yes you can rollover, but you may be right about CFDs

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  • I am afraid IG only do 3 months eurodollar contracts as standard (if you phone them up, they might be able to accomodate you with something else). Otherwise, you can short Lehman 3,5,20 years US Gov Bond ETF (I think it is also phone only).

    Remember this is a contest of the least ugly. There are few, if any pretty girl in the room right now.

    This is of course not investment advice.

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