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Old 08-07-2013, 02:36 PM   #1
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Bond Bubble to Pop

Jim Rogers on the bond bubble that is about to pop...

I guess he's right... it's the next bubble to pop:

EU, US, Japan... all close to popping their bond market... This is crazy!

They accumulate more debt with bonds. At the end they will have to pay the holders for the bonds...

This is a crazy debt spiral...
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Old 08-07-2013, 02:46 PM   #2
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The bond bubble pops when the 10 year rises up to an unsustainable interest rate. With Bernankenstein buying up the whole curve, it could be some time before we're forced to price in reality. On the other hand, if shit destabilizes some more in the MENA, and we decide to get froggy and jump in with some kind of fucked up Presidential Order, all bets are off. I am more worried about the swaps getting triggered when interest rates climb above the invisible line than I am about the actual interest rates themselves. The derivatives are far, far more dangerous than a couple more points on the vig.

Japan has sold most of their bonds to their own people, so when the shit hits the fan over there, it will be largely internal, The USA on the other hand, has pimped our debts out to everyone and anyone willing to fork over the cabbage for the privilege of holding our bonds, and so the wrath will come at us from all directions, but most notably from China. It should make for some interesting footnotes in future history books anyway.
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Old 08-07-2013, 07:39 PM   #3
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ancona, the idea that most JGBs are owned by the Japanese has been pure myth for years now, Kyle's mentioned it...
Here's a link:
http://www.ft.com/intl/cms/s/0/9d1c8...#axzz2bKk34fb7
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