2008年12月11日 星期四

Absurdity?

  1. Why would someone buy a bond that has negative yield? (Meaning that you will lose money for sure, you need to PAY so that government will borrow from you.) I give you 100 now and you give me back 99.9 in 3 months, sounds great to me. I guess only those mutual fund that REQUIRE their fund to invest in T-bill will buy these, so much for paying rediculus management fees for them to lose money FOR SURE.
  2. Why is CDS (insurance protection against default) of government bonds so high when the price of the government bonds are rising so fast? People are buying at a higher price while thinking that the default risk is going higher also? Crazy! One side must be wrong... (it's quite obvious which side that is)
  3. Why is the stock market rising (GREED) when the bonds are showing FEAR only?

Someone please answer me :)

Leave some comments!!

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匿名 提到...

because of the economy decline=]
The initial prices of goods is running high ma=]