Replies to post #3405 on Velocityshares Daily 2X Vix Medium Term (TVIZ)

[gldtimer]

It's Called 'Reloading'.

I explained it this way to my class (not-PC)...if the fort is under Injun attack (recession) it's always good to have some bullets (positive interest rate you can cut...firing off 25 basis point cut bullets) when they attack.

In the olden day's once you were at zero the gun would only go click, click, click...not much of a deterrent.

Nowadays, with QE & negative rates, they can borrow bullets and shoot them off so the need to reload isn't really necessary unless your a traditionalist monetarist.

Well anyone over 50 is pretty much in the traditionalist camp and long for the good old days when the Fed didn't have to borrow bullets. The unanswered question is can the economy take a dose of good old medicine (castor oil) and not go into a coma?

We're soon to find out.

Have a good MD break.