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Thread: "Pimco sells off all its US Bonds" followed by "Moody's...

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    Default "Pimco sells off all its US Bonds" followed by "Moody's...

    I must have been asleep last week. Did anyone else catch this? I think that is the second shot accross the bow from Moody's in a 2 or 3 months.

    "Pimco sells off all its US Holdings"

    "Moody’s Says U.S. Debt Could Test Triple-A Rating"


  2. #2
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    I sold all my bonds and stocks in everything while bush was still in office, did OK too......

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    Administrator Rick's Avatar
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    It's a short term position. Check it in six months.

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    I dunno, Rick. The US had a record $220 billion budget deficit in February and a record $270 billion trade deificit with China as well. Federal Reserve purchases will end soon, too. I sorta worry that if international events ever calm down the US is going to start paying alot more to borrow money.

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    Administrator Rick's Avatar
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    With regard to PIMCO:

    "Investors like Gross believe that bond values could drop once the Federal Reserve ends its $600 billion bond buying program in June. The Fed is expected to discuss the program, which was intended to spur economic recovery, at its next meeting."

    That pretty much sums up the whole article. I said last month or back in January (whenever) that cities and states would begin defaulting on muny's once the fed dollars dry up. That will have a direct impact on the amount of taxes the feds take in. So I can see why some fund managers would be worried like a fox. Why not dump high then buy back low? Wouldn't that be the smart thing to do? Watch and see if he doesn't wait for the market to drop before stepping back in to purchase Ts. Nothing dumb about that.

    By the way, do you own Savings Bonds? If you do then you are a lien holder on the nation's debt. A savings bond is nothing more than a form of treasury loan.

    On the second article.

    "That sobering assessment, issued Monday by Moody's Investor Service, provided a reminder that even Aaa-rated United State's Treasury bonds, supposedly the safest of safe investments, could be downgraded one day if Washington failed to manage the federal debt."

    It doesn't take much of a crystal ball to figure that out if things continue down the same path. Of course it will. It's pretty much a non-article to me.

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