Electronic Bonds vs. Paper Bonds?
caramelakilah asked:
They say that soon the treasury will stop the sale of discounted bonds at banks and financial institutions. Is it more profitable to buy bonds from the ban which are priced 50% off ($25 for $50 bond) or through treasury direct with is face value ($25 for $25 bond). Will the treasury direct bond brign in more intrest since its already at face value? What am I missing here?
How about changing career to be a pharmacy tech
Filed Under Investing | 2 Comments
Why are bonds doing so bad right now?
Matthew Smit asked:
People aren’t buying stocks right now. And it seems nonsensical to be putting my 401k dollars in a money market fund where they will earn 0.05%. Bonds seems like the obvious safe play here with decent returns. Yet, they have been doing poorly the last couple weeks. I have a large portion of my 401k in PTTAX which is a conservative, high credit quality bond fund. And it has been going down consistently. The fund mainly invests in US Treasuries. What is the reason for the downslide?
Matthew
Filed Under Investing | 5 Comments
Where is the money coming from to pay for the Stimulus Plan Congress just passed?
amiokhuh asked:
Both Japan and China bought US Treasury Bonds/Notes in the past and financed our debt. Both countries need money due to sagging economies, so without them, where do we get a trillion dollars to pay for the spending Congress and the prez approved?
Filed Under Elections | 6 Comments
Conservatives, how do you plan on paying for the war in Iraq?
BekindtoAnimals22 asked:
Most republicans think we should stay there until Iraq is a stable democracy from what I gather. China and several other countries are now paying for the war by buying U.S. treasury bonds that are accumulating interest and will have to be repaid. Are you willing to pay the high taxes that will become necessary in the near future to pay for all of this, or will you just blame the democrats because they’ll be stuck with it?
I can tell, few have actually considered that this war will have to be paid for. Our taxes are going to be outrageously bad. Historical consequences.
Sway: Welfare was reformed in 1996 by Newt Gingrich and Clinton. Look it up. It saved and is still saving 86% from previous welfare programs. Can only collect welare for 5 years.
One for the Doc: That is why there are now laws that send deadbeat dads to jail.
Health care through your employer and private insurance companies is not socialist.
Filed Under Politics | 6 Comments
How does the sale 10 yr treasury Bond affect interest rates?
J.P. asked:
I know when Yields go down, rates go down. What I dont understand is if the fed is buying 11b in 10 yr treasuries wouldnt that make yeild go up forcing rates up?
Filed Under Renting & Real Estate | 1 Comment
econ T-bonds, profit, loss, premium?
julie asked:
# If you buy a put option on a $1000,0000 Treasury bond futures contract with an exercise price of 95 and the price of the Treasury bond is 120 at expiriation, is the contract in the money, out of the money, or at the money? What is your profit or loss on the contract if the premium was $4000?
Filed Under Other - Business & Finance | 1 Comment
Fed buying 10-year treasuries and more mortgage-securities; how low will rates go?
lguz asked:
Anyone want to guess how low mortgage rates will go? The Fed just announced plans to buy $300 bln worth of treasury bonds, and $750 bln of mortgage backed securities. Both moves will affect rates.
Estimates?
Filed Under Renting & Real Estate | 1 Comment
How is new currency injected into circulation?
Currency E asked:
Say the central bank (fed) decides to add more currencies to the economy. How is it injected into circulation? I thought about Fed go buying bonds from the market with the new currency. But then how does Fed control the interest rate effect of the purchase? For example, Fed wants to add 100bn new currencies into the market, then first they have to find 100bn Treasury bills or bonds in the market. Under different liquidity conditions, the 100bn may lower the interest rate by different amount. How does Fed control that?
Filed Under Other - Business & Finance | 1 Comment
World Economic Question, relating to US economy?
Jake J asked:
I am wondering if I have the facts correct, America is dependent on China to artificially inflate the US dollar? Without China buying Treasury Bonds the Yuan would overtake the dollar and hence Americans would stop buying Chinese goods? Americans rush out everyday to buy from Walmart and others who sell only Chinese goods, which is trickling back to Chinese nationals who are buying up American Soil, ie. shopping centers ET. Chinese people have a savings rate of 30% nationally, whereas most US citizens save less than 1% of income. Is it just me, or should I start learning Chinese, as my future boss is going to be Chinese?? I have worked for large Development Companies my whole life, for the first half of my life I worked for American Companies, who would always run over budget and also never complete a job ontime. I started working for a Chinese company that buys all its materials from China, employees cheap labor and completes all projects under budget. What does the future hold
Filed Under Corporations | 1 Comment
Is it true that every U.S. dollar is loaned into circulation as debt, creating principal but not interest?
oianzinho asked:
…and therefore totally unpayable?
I asked something similar earlier but didn’t get an answer to my satisfaction.
I understand that the privately owned (though govt chartered) Federal Reserve buys treasury bonds with money it issues from nothing, and that the interest the U.S. owes on the bonds the Fed holds can only be paid by selling the Fed more bonds, creating an insatiable feedback loop of national debt — which the taxpayers must try to pay in vain, much like trying to pay off a credit card with the same card.
(When I say “privately owned” I refer to the private stockholding banks that take the Fed’s profits, not to the board appointed by the President which seems more like a go-between for the stockholders and the Gov)
That does sound too insidious to be true. Is it?
Also the last answer said that when local banks issue loans, they don’t create money but the process of issuing the loan creates money. That difference seems nominal at best and misleading at worst, like saying cars and not drivers run people over. How does a bank create money out of nothing and charge me interest on it, and confiscate my collateral at the barrel of the law’s gun should I default?
That ALSO sounds too insidious to be true. Is it?
And, of course, either way: prove it!
Filed Under Other - Business & Finance | 1 Comment
treasury bills, notes and bonds? please help?
Nichole asked:
am i doing this right….. if i invest $1000 in a treasury bill at a discount rate of 4.790% and the investment rate is 4.930%, then i will pay $952.10 to buy the bill and i will get $1049.30 when it matures?… therefore making a profit of $97.20
if thats not right please tell me how much i’ll pay, and how much i’ll get in return for a $1000 investment
thanks!!
Filed Under Investing | 3 Comments
are bonds a good investment right now? what should i know?
GRANT. Y asked:
i have been trying to research treasury bonds and it sounds like a good thing. ive just been reading about them and im sure its all wrote b4 todays economic situation. how do i go about buying one? give your 2 cents please.
Filed Under Investing | 3 Comments
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