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Re: langostino post# 79377

Monday, 09/08/2008 12:04:56 AM

Monday, September 08, 2008 12:04:56 AM

Post# of 147523
If I read this right, we're basically talking about an arbitrage between Treasuries selling at 50 year highs and MBS selling at 50 year lows. That's basically what the Paulson plan boils down to, right? Issue debt people are buying and use the money to buy debt people aren't buying.

I have a feeling we have a front row seat - right here, right now - to a really big chapter in future econ textbooks.

...how do you see this impacting oil/gas, gold, US dollar, and other commodities??

Pardon my french, but I have no f'ing idea.

What I'm reasonably sure of is that yeah - you can manipulate the price of something - but it's a lot harder to manipulate it's funadmantel value. So I'm not really convinced anything has fundamentally changed beyond the immediate short term. But I'm willing to listen to arguments otherwise!



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