Replies to post #282896 on Zeev's Turnips Patch-No Politics (ZEEV)

[osprey]

Brazilian and Argentinian bonds? Talk about Banana republics. As I recall both of those countries have had hyperinflation, defaults, currency changes, military dictatorships, and any other way that one can fold, spindle, or mutilate a fiat currency. I think one time one of those countries fixed their inflation by lopping 3 zeros off the peso or whatever they use.

One would have to have balls of titanium or a brain of hashbrowns to buy bonds in a Banana republic. Admittedly I know little about the current situation, very low on my list of priorities.

[lee kramer]

Hi Benson: Good thinking.

[Zeev Hed]

That is what happened to Thailand, Indonesia and then Korea in 97, the speculators were borrowing yens at 1% and buying Thai bonds yielding 15%, until we started to raise (ever so lightly) the rates here in the US, which sent money from Thailand to the US in hope for continuing rise in rates here, that brought about Thailand and Indonesia imploding, and Korea getting to the brink (and the sharp October 97 correction later, here), but that was just a mild interruption in a still (then) powerful bull move.